After a recent presentation about saving and investing moderated by SAEA board members, the SAEA membership engaged in the discussion surrounding the saving, investing, and spending habits of Engineers in particular. It is common to stereotype engineers and introverted analytical individuals. That, however, should not impact their choices when it comes to the selection of investment options suitable for their age, earning, and life conditions.
Members noted that engineers prefer to keep their funds in stable assets such as savings accounts, or corporate bonds, and treasury bills which have low risk but also offer the least in terms of potential gains. Due to their highly logical mentality, engineers tend to be risk-averse.
However, this may impact them negatively in the long run. Some smart, calculated risks, especially while the engineer is younger or earlier on in their career can lead to the significant long-term growth of investments by the time of retirement and achieving financial independence and stability.
SAEA leaders recommend their members to take advantage of compound interest by leaving investments to grow for the long run, investing early and often, and diversifying their portfolio to include a combination of “safe” assets and more growth-oriented ones, shifting strategy based on proximity to retirement.
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