Spending Is Riskier Than Investing

closeup photo of four round silver colored coin

When people hear that I invest more than 50 % of my salary they instantly say something like this:

“Wow! That sounds risky. What if you lost all of the money?!”

The Binary Money

Broad speaking, there are two things we can do with our money:

  1. Spend them
  2. Save or invest them

Firstly, spending our money is a 100 % guarantee that you have lost them. They will never come back.

Secondly, investing your money is giving you a high probability of the money coming back with a decent return.

The Corona Apocalypses

“What if the entire stock market crashed?!”.

This pandemic has risen paranoia in some people, who fear that the whole world will come to an end.

If that was the case.

What kind of spending would save your ass?


Except if you had bought a concrete bunker. Which would be sad.

Would a more frugal person have a higher risk of survival than a none frugal person? 

I think so.

Would you be any happier before the apocalypses by spending more?

I doubt it.

Your Money is a Ballot

When we spend money. We also sent a little letter to the company that we have just bought this product, so there is a demand for it.

Therefore, they will produce more of it.

The most environmental way to spent your money is by not buying anything.

In conclusion, spending is a 100 % guarantee of loss, and it will not make you happier or make the world a better place. Investing is the only way to have a more tranquil living and make the world a better place.

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This article is sponsored by Udbytteaktie.dk

6 thoughts on “Spending Is Riskier Than Investing”

  1. I think we should separate saving and investing. Saving will also almost certainly have negative returns. Investing is the only option with potential for positive returns 🙂 I think one of my biggest money mistakes so far has been focussing on saving rather than investing. While that’s better than spending, it’s still not great!

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