Differences between Saving and investment

[idhans]

The words 'Saving' and 'Investments' are sometimes used interchangeably by most folks.
The two words have some similarities but that doesn't make them the same.

"There's a popular saying that Savings are investments, but not all investments are savings"

Saving actually means keeping some amount of money aside to meet long or short-term needs which may not yield any profit and it attracts zero risk.

On the other Hand, investment means putting money into a business or venture to yield profits within a specific period with risks depending on the targeted roi.

Some of your savings can be labeled as an investment. For example, if you save money on a fixed deposit bank account, it is also an investment. Likewise, if you invest in security bonds/ treasury bills (offered by the government, central bank, and commercial banks), it is also some kind of saving. Sometimes it is really hard to say which one is which.

Savings can only give you a little interest or profit if you are saving in the bank, and also if interest rates is higher in your country of residence. Investment brings more profit, and income. it's better to invest your money rather than saving it in the bank.
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The words 'Saving' and 'Investments' are sometimes used interchangeably by most folks.
The two words have some similarities but that doesn't make them the same.

"There's a popular saying that Savings are investments, but not all investments are savings"

Saving actually means keeping some amount of money aside to meet long or short-term needs which may not yield any profit and it attracts zero risk.

On the other Hand, investment means putting money into a business or venture to yield profits within a specific period with risks depending on the targeted roi.

Some of your savings can be labeled as an investment. For example, if you save money on a fixed deposit bank account, it is also an investment. Likewise, if you invest in security bonds/ treasury bills (offered by the government, central bank, and commercial banks), it is also some kind of saving. Sometimes it is really hard to say which one is which.

Savings can only give you a little interest or profit if you are saving in the bank, and also if interest rates is higher in your country of residence. Investment brings more profit, and income. it's better to invest your money rather than saving it in the bank.

 

[Dorcey]

difference between savings and investment. There's one thing you should know about investment and savings is that when you save ,savings is for future use and are kept in a particular safe place and Might not be multiplied but when you invest it multiplies it's initial amounts.

 

[Sheyemanu]

Saving and investment are two different entities. Saving involves keeping your money or stashing it in a bank or a place that gives little to no returns with the hope of it becoming a bigger amount after a period of time. Investment involves putting your money in a place with an amount of risk for a good ROI

 

[Jobiezue]

But come to think of it can you really invest without first of all have savings ? I don't think it's possible to make an investment without saving up some good amount of money to start up with. So i think the two goes together a d can't be separated.

 

[Quert]

Save and savings are important for financial stability. Saving is a healthy way to put money away and use it in the future, at its simplest. Investment means spending your capital in the hope that your money, including bonds, funds, and property, will grow.

 

[Sheun450]

There's a big difference between investment and savings. When someone save such a person might not get profit or get little profit compared to investment where there is a huge return on investment depending on the type of investment you venture into

 

[Bangiszz]

Saving and investing frequently are utilized conversely, yet there is a distinction. Setting aside is putting aside cash you don't spend now for crises or for a future buy. Investing is purchasing resources, for example, stocks, securities, shared assets or land with the assumption that your venture will bring in cash for you.

 

[Jobiezue]

Even the two words seems to be different but they go hands to hands and each have to be categorised based on the time schedule. You have to look for a better opportunity to put savings whole you invest your savings on something that will yield more money in the future

 

[Sotherefore]

Saving is the art of you keeping your money in a bank or any other way it could be at home for a long time without any thinking of using it but the investment is different because if you invest money you invest and you're expecting to gain a certain percentage of what you invested either monthly or yearly.
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Saving is the art of you keeping your money in a bank or any other way it could be at home for a long time without any thinking of using it but the investment is different because if you invest money you invest and you're expecting to gain a certain percentage of what you invested either monthly or yearly.

 

[Caali]

To me, SAVING is taking out money from your money earned/received and stocking it for the rainy day. On its own it will not grow and gradually with time INFLATION will eat it as purchasing power of money erodes with time.

 

[HIFSA LAHORI]

There is a big difference in saving and investment,so what you save apart from household needs is your saving and in today's era of inflation, it is also a difficult task. So you understand that investment is the only solution you have to save. You invest money anywhere and from there what will be your profit is just your saving.

 

[Kiko]

A savings account is typically no-risk. You earn interest on the money you save; your initial capital is guaranteed and it’s more easily accessible if and when you need it. This type of account enables you to save money for a specific purpose, such as a dream holiday, within a short period of time. Investments are aimed at wealth building. They involve greater risk, but also have the potential for higher returns than a regular savings account. Investing is the process of using your money to buy an asset that has a good probability of generating an acceptable rate of return over time, making you wealthier in the long-term.

 

[Nabeel119]

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.

 

[iamgroot]

The words 'Saving' and 'Investments' are sometimes used interchangeably by most folks.
The two words have some similarities but that doesn't make them the same.

"There's a popular saying that Savings are investments, but not all investments are savings"

Saving actually means keeping some amount of money aside to meet long or short-term needs which may not yield any profit and it attracts zero risk.

On the other Hand, investment means putting money into a business or venture to yield profits within a specific period with risks depending on the targeted roi.

You are right there sir, I just added, your capital is safer when in savings mode compared to when you put your investment savings as capital. There is a high chance of making a quick and big profit when investing but the risk is also very high. It can disappear in an instant.

 

[Azhar119]

When you "invest," you have a greater chance of losing your money than when you "save." Unlike FDIC-insured deposits, the money you invest in securities, mutual funds, and other similar investments is not federally insured. You could lose your "principal," which is the amount you've invested.

 

[Asma]

Saving and investment both are little similar but has change faces because saving is fixed and is not give as any profit. but investment is more powerful than saving through investment people stand her small or little business or get profit that is extra income..

 

[Edward2]

Saving and spending are sometimes used interchangeably, but there is a distinction. Saving is putting aside money for emergencies or a potential purchase that you don't spend now. ... Investing is purchasing assets such as stocks, bonds, mutual funds or real estate to make money for you with the hope that your investment will

 

[iori23]

savings and investment are almost the same, with the savings you save on investment you can invest that can grow, the difference is maybe the investment is good because you are my profit especially when you invest big.

 

[Ryeetar]

Some people say they save because of the rainy days, but if you not careful when that time comes they might be nothing left to spend as long as you a human you must have demands. In the olden days our forefathers saved too, by keeping their money in the ground to avoid been stolen also because they didn't know the principle of investing. Investing is putting your money into something worthwhile in order to generate more income.

 

[eLdavis]

Savings is the process of keeping a particular amount of money aside with the mindset of not spending it, during the period of saving, there is no profit generated or gains gotten from the money saved. But investment is a process where by you acquire chairs, stocks etc which in turn generates profits and gains for you. It could be either long term or short term.