Differences between Saving and investment

[Sotherefore]

Thanks for sharing the educative information, investment is the act of you investing a certain amount of money in a trusted company for them to use the money to do a particular business or services and pay you a certain percentage every month while saving his act of you keeping your money in his very secured place for future purpose.

 

[M.ASADULLLAH]

saving and investment both are the different things these are not same. We save something it means that it will remain same at the time of savings and after many time if you did not increase the amount it will not increase but when you invest something for some sort of business it will be very profitable for you. You can get the amount of investment after doing investment and also can get more profit along with this so that is why investment and savings are both different.

 

[unhappy triad]

Investment you put your money into use with the hope of gaining profit or wealth with risks attached.
You engage your money into creative ventures. In savings you keep your money for future use. Your money is not working and your interest accrued may be low or zero.
Better to invest than to keep your money in savings account. Such money loses value with time

 

[Neeta313]

When you save, you do not get any interest, however, when you invest, you are sure of getting interest but in the case of where the investment does not turn out well, you tend to lose everything. Investments are risky to an extent, but when successful, it can guarantee you more money. If you are not a risk taker, you can invest part of your money, so you dont lose it all. There are still saving platforms you can save and get interest. So saving will be your best option.

 

[Philip Omotayo]

Saving is keeping a specific amount of money aside for future purposes. Many savings does not bring about increase. What you save is what you get. And You have assess to your money at anytime. While investment is incurring huge amount of money into a productive venture with the sole aim of making profits. Investment is for the purpose of making returns at the long run.

 

[Blessedsam60]

To my own best knowledge. Savings is when you decide to be putting your money in a particular place either bank, or somewhere save for future use but investment means putting your money into a business is expectancy of a returns. Savings disadvantage is that it does give that rapid interest at times.

 

[WhiteHouse]

Saving is equivalent to income expenditure. Savings are typically kept as crisis reserves. The fundamental motivation behind Saving is to give liquidity and being effectively open. Normally it is fitting to put something aside for your flow and anticipated costs, for example, power charges, protection expenses and any buy you need to make sooner rather than later. While, investing is stopping your overabundance cash in roads which will assist you with developing your abundance and these assets can be utilized for long haul objectives, for example, purchasing a house, youngsters' schooling or marriage. Generally, put away cash is utilized for gainful reasons in the general public and lifts up the economy.

 

[Davis]

Investment and savings are different.You don't save and earn(make money/profit), you can only invest to earn. i.e. savings is keeping for a future purpose and getting the same amount kept in the future... While investment is keeping to get the amount kept with profit ( nb: loss may occur in investment)

 

[Jobiezue]

Saving some amount of money can really be of a help, even when you invest without saving up some money could be a bad idea. You need to save even while you invest because without saving up your investment could still crash on the way.

 

[Miracles04]

Savings helps you make money while investing MIGHT help you build wealth”

Putting the above statement in another way, when you invest, you are more likely to lose your money and become poor than when you save.

The basic difference between Savings and Investment is just the Profit margin and risk factor.

Savings = Zero Risk investments + Low-profit margin.

Investing = High Risk + High-Profit margin.

This simply means that Savings can be called investments, but investments cannot be called savings.

A friend of mine had 600k Naira in his account and invested about 400k in setting up a poultry farm. After 4 months, all the bird suffered from a particular disease and died. He was left with just 200k to plan his life again.

A woman has 1 million Naira in her account and invested about 900k in a particular share she was advised to buy. The Share lost its value and she came back home empty-handed.

“What a way to spend her hard earned money”

There are also success stories of people who invested and got out successfully, but in investing, it is nothing but pure luck and a little bit of financial literacy.

A particular popular firm in Lagos known for it rich financial background has been declared bankrupted and taken over by the appropriate body. Shareholders and stakeholders have gotten their fingers burnt, which means Goodbye.

Things to do before you decide to Invest as a Starter

1. Have robust savings account far from your reach

A lot of people contacted me after my last post on how they could invest. After I talked to them about the need to save money before investing, I became a prophet of doom to them. They forget that the fastest way to lose money or gain money is to invest. This is a big difference between Savings and Investment

As a low salary earner, a working class person with a family with no major savings, young people building their lives, saving for a while will give you the leverage to invest.

"Investment portfolios will never stop to cease, but saving requires discipline and focus."

It is impossible to find an investment with so much upside potential without excessive risks to it. Imagine looking for an investment portfolio with an interest margin of 40%, yet you aren’t willing to lose money. It doesn’t work that way.

If you don’t have reserve savings account with more than 500k Naira, then you shouldn’t think of investing in any major portfolio.

You can’t have an account balance of 100k (Home and abroad), and you are thinking to start a business with all of it. Have you calculated your risk factor? Maybe you should just employ me.

Consider your Debts, Cash Flow, and Liabilities.

A married man with 2 kids already has lots of liabilities to consider. The wife, home, kids, school fees, car, and etc are enough debts to consider already.

There are several savings investments to invest in, and I will be willing to share in my next post. You can just subscribe and I will inform you when it is out. The basic truth is that you should consider Savings and Investment.

The key to saving like I discussed in my last post is avoiding the banks (Where you won’t touch your money)

Save for a while before you invest

According to Warren Buffet (the chief saver), he said “Investments might make you rich, but savings will never make you poor).

 

[Bkoks]

Saving Is pilling up money in a safe place like , banks . Investment is using the money you have to generate more income for yourself investment is very good thing but it has risks but very good but had for me, I'll invest and safe at the Same time

 

[Praizee]

The differences between savings and investment is that. When you save money you get the actual amount you had saved. But when you invest in business you get profit in returns added to the money to invest with. Savings us for future use while investment can be for daily uses.
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The differences between savings and investment is that. When you save money you get the actual amount you had saved. But when you invest in business you get profit in returns added to the money to invest with. Savings us for future use while investment can be for daily uses.

 

[Klismannm12]

I think the basement with this insurance to eat to bring your money over time courses in East London.

 

[jimmann247]

Saving is the process of you saving money for a particular project for some time in a particular place or account without expecting any interest rather ready to pay some fee if you are saving it in a financial situation. While investment is Puting a particular amount in an investment platform or stuck in other to yield interest for you.

 

[Briangsam]

The difference between savings and investment is as clear as day. In savings, you stack up the money and check the balance without any potential of having any profit off it. But with investment, it is not only long term, you will also get massive profit off your money.

 

[Adegbindin deborah]

Saving is setting aside money you don't spend now for emergencies or for future purchase, investing is buying assets such as stocks or real estate with expectation that your investment will make money for you when you invest you have a greater chance of losing your money than when you save.

 

[Kingsley]

Savings are a portion of what is left after consumption has been deducted from an income while investment on the other hand is the amount of assets or wealth set aside to create further wealth investment should be encouraged because it increases the amount of saving net.
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Savings are a portion of what is left after consumption has been deducted from an income while investment on the other hand is the amount of assets or wealth set aside to create further wealth investment should be encouraged because it increases the amount of saving net.

 

[Jobiezue]

Many people he sent really seen what to consume talkless of what to save but we must take up the challenge and start saving, no tree how little. The worst part of it all is when you keep having incoming without saving up some no matter how little.

 

[Profuk57]

there is a very big difference between investment and saving when you are saving you have little or no hope of your money be duplicated, while investment on the other hand gives you returns depending on what you invested in and time frame of investment.

 

[Olamide wealth]

Saving and investing often are used interchangeably, but there is a difference. Saving is setting aside money you don't spend now for emergencies or for a future purchase. ... Investing is buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you.