The simple difference between investing and saving

[Kennysplash]

Many people seem to confuse investing and saving. While they both deal with boosting your finances, they are completely different terms.

Investing is basically making your money work for you. This can be through business or assets acquisition.
Saving means keeping a percentage of your income for future use.

While the return on your investments can grow, part of your savings if not careful can be lost to inflation.

 

[relcap23]

Investing is associated with risk factor but higher returns is possible. Interest rates on savings is small to encourage investment. Investment is an active economic tool that can contribute to the community. Investment has impact on the state of the economy.

 

[RicAngelo]

talking about investing, we all know that if we want a high return there's a high risk that follows, that the rules, you can not get a high return with low risk ( it is too good to be true, and be careful about scam things)

 

[nomad]

Investing will give you returns, and saving secures your funds but it might not give you returns. However, sometimes the line that divides investing from saving will blur. For instance, what do you call when you put your money on high yield saving accounts?

 

[RicAngelo]

Now, Digital banks in Indonesia offer us a good rate of interest for saving on their bank, I still do not want to do it but after my friend told me that they get daily interest, its too good to be true but its legal bank we talking about

 

[uptrendfinancialsignal]

If You seek to increase your money then it is better to involve investment rather than savings.

 

[RicAngelo]

but doing investment we have to know first what kind of investment we would do, there are a lot of scammers out there who claim will give you excellent profit in a short period of time. To good to be true

 

[IB D]

Investing is simply putting the money to work. Savings on the other hand is allowing the money to lie fallow. I personally prefer to invest than to save.

 

[Bisolami]

Investment is surely going to add to the value of the economy. That is a very sure thing

Investing is associated with risk factor but higher returns is possible. Interest rates on savings is small to encourage investment. Investment is an active economic tool that can contribute to the community. Investment has impact on the state of the economy.

 

[astutimeliana723]

Simply put, the difference between saving and investing lies in the risks involved. Saving is saving money so there is very little or no risk of loss. While the investment is to develop capital, so the risk of loss and investment funds not returning is still there.

 

[jetsaints30]

Simply put, the difference between saving and investing lies in the risks involved. Saving is saving money so there is very little or no risk of loss. While the investment is to develop capital, so the risk of loss and investment funds not returning is still there.

Thats correct. Saving involves keeping money in a low risk account or investment like savings account, while investing involves putting money into higher risk assets, like stocks or real estate with the expectation of higher returns.

 

[astutimeliana723]

Itu benar. Menabung melibatkan menyimpan uang di rekening berisiko rendah atau investasi seperti rekening tabungan, sementara investasi melibatkan memasukkan uang ke dalam aset berisiko tinggi, seperti saham atau real estat dengan harapan pengembalian yang lebih tinggi.

To decide between the both is also not easy, if we need money in the near future less than 3 months, it's better for us to save in savings. If it is for needs that are more than 3 months, we can choose an investment but must be prepared for the risk if the investment funds do not return. That's why usually those who invest are rich people who have a lot of money.

 

[puroypoi]

This is how I define it, in investing, you let to figure out how your money can bring much returns or profits on you, while in savings, won't give you much profit, look at those who just put their money on banks, a meager monthly interest is what they can only get from letting their money stay in the bank. And look also at those who just save their money on their personal safety box, it won't earn anything.

 

[Suba]

Basically saving is just securing or saving money in a safer place, (bank) and will get a small return with a small risk, while investing means that we put money in an investment instrument, to get future returns.

 

[Stardom22]

Saving is simple keeping some money aside for future use. Savings may likely not earn anything while investments means putting your money into a project or business and earning you a profit with time.

 

[SHAHID987]

In saving you almost get no extra money or very little increase in your money, but their no risk involved. While in investing you get big profit but with great risk.

 

[cherry123]

Yesh Investing is making your money work for you while Saving means keeping a percentage of your income This can be through investing in a business and saving the money

 

[eldavis]

Investing is putting your money for a specific period of time with the expectations that it would grow and generate more profit for you. Savings on the other hand is simply putting in your money for future use.

 

[Stardom22]

Savings involves the keeping of money in a bank account or something for the future use. However investment is the type of the business that involves the keeping of money on your goods or services /project for the aim of collecting a profits/interests

 

[Smalto]

Many people seem to confuse investing and saving. While they both deal with boosting your finances, they are completely different terms.

Investing is basically making your money work for you. This can be through business or assets acquisition.
Saving means keeping a percentage of your income for future use.

While the return on your investments can grow, part of your savings if not careful can be lost to inflation.

You are absolutely correct and I agree with you, investing is more like making your money work for you while you maybe away or asleep yielding more profit or rather more money for you, while saving is more of keeping your money while it idles away.