Difference between investment and savings

[Peppul]

For people that don't know the difference between investment and saving here is a little idea about it.
Saving - is setting a side money you don't spend now for emergencies or for future purchase. It's money you want to be able to access quickly, with little or no risk, and with the least amount of taxes. Financial institutions offers a number of different savings options.
Investment - is buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investments usually are selected to achieve long term goals. Generally speaking investments can be categorized as income investments or growth investments.

 

[Kennysplash]

Saving is keeping your money in your account for future use. Investment is putting your money to good use by investing it in many ways that can bring enough profits. Some might say saving also brings profit but you cannot calm that profit. Making 10 percent per annum of your savings is daylight robbery. To give you that 10 percent they must have made about 200 percent. So don't make your money stay idle by saving it, make it work for you by investing.

 

[Bookwormlux]

They are all very important financial factors that must be put in place if an individual really wants to attain financial independence in our world today.
It seems some people are not much interested in investing their money, but prefer savings. This kind of thing makes banks richer because they use your money to do business while you sit at home without using the money to do anything, though they are keeping it safe for you.
Investment is a very important aspect of our lives, it is good to invest instead of just leaving your money in savings account, though try and leave some for savings still.

 

[Hina]

Difference Between Savings and Investing
Savings refers to putting or saving money aside for future use and not using it thus involving low risk and low returns whereas Investing refers to investing money in different forms at different rates for some specific period of time to earn or gain more money on the principal amount of investment and the same involves more risk and return.

 

[Deleted member 28873]

Savings and investment are two different things entirely.savings is keeping a part of your hard earned money either daily,weekly,yearly totally your choice while investment is placing your money on a business related idea with the sole aim of making more money(profit).savings are for people who can't contain there fear of loosing money and prefer to play it safe.saving is less risky compared to investment.

 

[Doradorwa]

Saving and investment are two different terms that sometimes get used wrongly.... When you save your money the money does not get high in value or anything... The money is just stagnate waiting for you to come and spend... No value added at all but when you invest then your money is in an empheurical asset that will add value to your main money... E.g house asset, transportation line.

 

[Josemendez]

You have done very well by stating the difference between the two , the question then is , which of them should one ho for , Investment or savings ?
As for me ,I will surely go for Investment because it has a lot of advantage attached to it compared to savings .
Through investment ,one stand a chance of growing his capital up to 1000% with a given period of time , savings will only secure the money ,and perhaps with a little interest .

 

[Mataracy]

Saving can be define as money saved for future purposes and not for immediate use.
In other hand investment is on certain businesses that can yeid profit or interest in the future.
For example one can invest on shares that is by buying shares at small amount of money and sell it at higher price like e.g buying shares at #5:50k each unit and sell it at the rate of #10:20k each latter you can now see that profit has add up and at the same time,some time one may still run at loss.
Therefore investment involved risk while savings did not involve risk.

 

[Alexandoy]

I know that savings do not earn except for the very little interest in the bank. But that is fine with me because my money is intact even if you say that the value deteriorates as time goes by. When you invest the money there is a risk of loss and I do not want to be thinking at night that my money may be gone. When in the bank as a form of savings I have peace of mind and not much worries.

 

[IamDozzy]

There is a major difference between Savings and Investment. Basically, savings is keeping money in a financial institution for future uses or emergencies.Your money being in a financial institution accrue little interest like say (1-2)% while Investment I basically letting your money work for you. It is putting your money in a profitable venture with high yielding returns of like say (5-20)% Return of Investment (ROI). So I will encourage people to invest rather than save.

 

[Johnnyb4btc]

Saving is good, but investing is way better. Saving is for a short time, investing is for a long time, saving doesn't increase your money, investment increase your money. Everyone must master the two as they both have there useful point. Saving is for emergency and investing is for the future, we all need to learn how to save and most importantly learn how to invest.

 

[Maks25]

Go for savings. It will take you many years to understand what investment means. Investment is a long term and often fixed term form of savings for people with mature economic minds. So many adults never comprehend the principles of investment all their lives. To the learning mind investment doesn't make sense because it keeps your funds out of your immediate reach and deprives you of cash flow.Save to Invest; Never Save to Save.

Saved money does not increase in value but the right and well managed investment increases in value.

 

[Augusta]

investment and savings involve money but in different ways. You would need to always find a way of using your hard earned money wisely so that it doesn't look like all your sweat ahd hardwork went in vain. if you can then you should do the two saving and also investing.

So savings is about putting aside money so that you can have a good financial backup doing the rainy Days. it has been great right from time to save money. it will help you have financial freedom as you don't need to borrow money for any financial issues.

On the other hands, investment is about putting money into any profit yielding ventures so that more money can be made. The good thing with investment is that you don't have to be actively involved just put your money into a workable investment and allowed your money work for you. And you would continue making money.

 

[Sotherefore]

I understand saving of money to be a situation that an individual prevent unnecessary or immediate use of money but rather money are being kept for long-term uses and sometimes for situations that may arise in the near future that may needs that money at that time . There are so many reasons why people saves money anyway.

Saving money are mostly done in commercial Bank depending on your country , like over here we have different type of bank that can be used for this and are mainly controlled and regulated by the Central Bank of the country.

Investment is just an act or situations that individual instead of savings will rather put forth his money into any project that has the potential of generating extra profit within a fixed period of time..

There are many ways people can invest their money , it could be in real estate or a legal agreement to invest in the bank through fixed deposit.