The Pragmatic Approach – Grow This Wealth (2024)

Why Saving Dollar for Dollar Won’t Suffice for Your Future

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Dear fellow female aspiring millionare’s,

Today, let’s delve into a crucial aspect of financial planning that often gets overlooked: the effectiveness of saving dollar for dollar versus investing for your future. While the former might seem like a straightforward strategy, it’s essential to understand its limitations and why investing is a more prudent long-term approach.

Saving dollar for dollar, with the intention of matching your expected expenses in your later years, sounds logical in theory. However, in practice, it’s fraught with impracticalities and shortcomings that can significantly hinder your financial security. Here’s why:

  1. Life’s Uncertainties: Life is unpredictable, and unexpected expenses can arise at any moment. Whether it’s a medical emergency, home repair, or sudden job loss, relying solely on saved funds might not suffice in such situations. Having a robust emergency fund is crucial, but even that might not cover all eventualities. Investing allows your money to grow over time, providing a buffer against unforeseen circ*mstances.
  2. Inflation Erosion: One of the most insidious threats to your savings is inflation. Over time, the purchasing power of your money diminishes due to rising prices. Saving dollar for dollar might seem sufficient now, but decades down the line, that amount may not stretch as far as you anticipate. Investing in assets that outpace inflation, such as stocks and real estate, can help safeguard your wealth against erosion.
  3. Opportunity Cost: Every dollar saved is a dollar that could potentially be earning returns through investment. While saving is undoubtedly essential for short-term goals and emergencies, parking all your funds in low-yield accounts means missing out on the opportunity for growth. Investing allows you to harness the power of compound interest, where your earnings generate additional returns over time, exponentially increasing your wealth.
  4. Long-Term Financial Goals: Retirement planning is a marathon, not a sprint. Saving dollar for dollar might provide a sense of security in the short term, but it’s unlikely to sustain you through decades of retirement. Investing allows you to build a diversified portfolio tailored to your risk tolerance and financial goals. Whether it’s saving for retirement, buying a home, or funding your children’s education, investing offers the potential for long-term wealth accumulation.

While investing undoubtedly carries risks, it’s essential to approach it with a calculated strategy and a long-term perspective. Diversification, asset allocation, and regular monitoring are key principles to mitigate risk and optimize returns.

In conclusion, while saving diligently is commendable, relying solely on a dollar-for-dollar approach is impractical and insufficient for securing your financial future. By embracing investing as a long-term wealth-building strategy, you empower yourself to weather life’s uncertainties, combat inflation erosion, capitalize on growth opportunities, and achieve your long-term financial goals.

Remember, financial planning is a journey, and investing is a vital tool in navigating the road to financial security. So, let’s adopt a pragmatic approach, informed by sound financial principles, and set ourselves up for a brighter, more prosperous future. Your financial foundation is extremely important because helps clearly identify the ability to save or invest. Check our budgeting tool to help you establish a solid foundation.

Here’s to smart investing and a secure financial future!

DO YOU WANT TO SECURE YOUR FINANCIAL FUTURE?

Start with the foundation steps with BUDGETING

Our Budget Toolkit is robust but simplified for everyone to use. Take charge of your finances today. Know where all the money you earn goes and start taking the steps to redirect your hard earned money to work for you and secure your financial future!

The Pragmatic Approach – Grow This Wealth (1)

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The Pragmatic Approach – Grow This Wealth (5)

HELLO! I AM BUKI OGUNDELE

A mother, a wife and personal finance coach. The financial mind behind this space. Grow This Wealth has been created as a space to guide you as you navigate through the financial aspects of your life.With the right tools and resources that will transform your financial life, enable you to achieve financial freedom and build generational wealth.

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The Pragmatic Approach – Grow This Wealth (2024)

FAQs

What is the pragmatic approach? ›

A pragmatic way of dealing with something is based on practical considerations, rather than theoretical ones. A pragmatic person deals with things in a practical way.

What is a pragmatic strategy? ›

PRAGMATIC STRATEGIES can be divided into two types: Sociocultural Strategies—understanding the sociocultural norms of behavior underlying the communicative act. Language Strategies—understanding the appropriate language behavior (e.g., grammar, vocabulary, structures) for performing the communicative act.

What is the pragmatic perspective? ›

A pragmatic perspective means to have a holistic view on the world, basing analysis on experience and don't worry about wordgames that makes no difference.

Why is pragmatism important in business? ›

One of the key aspects of pragmatism in business is its impact on decision-making. Rather than adhering strictly to theoretical frameworks or dogmatic ideologies, pragmatic businesses focus on what works in the given context.

Is a pragmatic approach good? ›

Pragmatic investigations strengths are that they can:

Be useful when unexpected results arise from a prior study. Help to generalize data. Be helpful in designing and validating an instrument. Enable a researcher to develop a holistic analysis to fully incorporate numerous relevant factors into the study.

What is a pragmatic approach towards life? ›

Pragmatism as a Way of Life is, among other things, an argument for the value of philosophy. As the Putnams see it, pragmatism means thinking about the world 'in ways that are relevant to the real problems of real human beings.

What is a pragmatic approach example? ›

Example sentences. pragmatic approach. She was matter-of-fact about dying; she took the same pragmatic approach she would in booking a hair appointment. A more pragmatic approach is to consider a trial of therapy with a granular drink (cholestyramine) that mops up bile.

What are 3 major concepts of pragmatics? ›

Some of the main pragmatic theories are the 'Co-operative principle', 'Politeness theory', and 'Conversational implicature'.

What are the 4 types of pragmatics? ›

We'll consider four aspects of pragmatics in this lecture: speech acts; rhetorical structure; conversational implicature; and the management of reference in discourse.
  • Speech acts. ...
  • Conversational implicature. ...
  • Rhetorical Structure. ...
  • Managing the flow of reference in discourse.

What is a pragmatic person like? ›

A pragmatic person is sensible, grounded, and practical — and doesn't expect a birthday celebration filled with magical creatures. Definitions of pragmatic. adjective. concerned with practical matters. synonyms: matter-of-fact, pragmatical practical.

What is pragmatic thinking? ›

Thinking pragmatically means making decisions based on available evidence towards applied outcomes. A pragmatic thinker is guided by practical considerations, what is immediately and realistically understandable or implementable.

How can I be more pragmatic? ›

Focus on Real-World Application: Emphasize practicality and real-world application when considering ideas or solutions. Instead of getting lost in abstract theories or debates, ask yourself how a particular idea or solution can be applied to solve actual problems or achieve desired outcomes.

What is the most pragmatic approach? ›

The most pragmatic approach would be to select an outcome that is obviously important for patients. Surrogate outcomes, composite outcomes are less pragmatic. Also, if outcome adjudication requires special training or tests not used in routine practice, this outcome is less pragmatic.

What is the main goal of pragmatism? ›

Pragmatism is a philosophical movement that includes those who claim that an ideology or proposition is true if it works satisfactorily, that the meaning of a proposition is to be found in the practical consequences of accepting it, and that unpractical ideas are to be rejected.

Why pragmatism is best? ›

Some benefits of pragmatism include: It emphasizes the importance of practicality and usefulness. Pragmatists believe that ideas should be judged based on their ability to solve problems and improve the lives of individuals and society. It encourages a flexible and adaptive approach to problem-solving.

What is an example of pragmatism method? ›

One example of pragmatics in language would be if one person asked, "What do you want to eat?" and another responded, "Ice cream is good this time of year." The second person did not explicitly say what they wanted to eat, but their statement implies that they want to eat ice cream.

What does pragmatic mean in simple terms? ›

Pragmatic means practical, especially when making decisions. The word pragmatic is often contrasted with the word idealistic, which means based on or having high principles or ideals.

What is an example of pragmatic theory? ›

One example of pragmatic theory is John Dewey's focus on action in education. For Dewey, children learn by doing rather than, for instance, merely listening to lecture.

What is pragmatist approach to learning? ›

The pragmatist learning style is very forward-thinking in the sense that they actively encourage new trends, trying things out and from a philosophical standpoint, the pragmatist is often at the forefront of new ideas and concepts.

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