Difference between saving vs investing let’s see who wins the race🤔
Contents
What Is Saving?
I know you all know what is saving but if somebody doesn’t know what is saving let me explain to them okay if you earn Rs 20000 rupees in a month and you put aside Rs 5000 for emergency purposes for future use basically that is called saving in simple words.
Why saving is important?
Saving is important for your emergency purpose you never know what will happen tomorrow for that you need to be ready. You don’t have extra savings there is a high probability that if you need that money whether for a health emergency or whatever emergency in the future you need to ask someone for the money so better to have your saving so that you won’t need to do that.
What is investing?
When you put your saving into the stock market, business, or any other thing in which you think that your saved money can grow over a longer period of time basically it is called investing in simple words okay.
Why investing is important?
As I already said investing helps you to grow your saved money. Over a period of time due to inflation, your saving can lose value. That’s why to protect your money, and your wealth, you need to do investing in a particular place where you think that your money can beat the inflation rate and you can enjoy your life without getting any problems.
Difference between saving vs investing?
| Saving | Investing | |
| 01 | Everyone knows about saving | Hardly people know about investing |
| 02 | Saving is easy to do | Investing is a little bit hard to do |
| 03 | Anyone can do saving | Not everyone can do investing |
| 04 | Saving is used for emergency | Investing is used for creating wealth |
| 05 | Saving is short term | Investing is long term |
| 06 | Saving loses value with inflation | Investing gain or lose over the period of time |
| 07 | In saving, you works for money | In investing, money works for you |
| 08 | Saving requires less planning | Investing requires more planning |
| 09 | Saving involves low risk | Investing involves high risk |
| 10 | You can’t become rich by saving | You can become rich by investing |
| 11 | Poor and middle-class focus on saving | Rich people focus on investing |
Why is saving safer than investing?
The only reason why many people think that saving is safer than investing is that you keep your money with yourself that’s why people think that the money is safe with them and while investing they have to invest in somebody. In short, they think they have to give that money to someone else if something wrong happens then they will lose their money that’s why many people think that saving is safer than investing.
Otherwise, if you see the reality saving is also risky like investing when you save your money the money which you save loses its value over a period of time due to inflation. So if you think carefully again you will notice that saving is also not safe.
How important is investing or saving?
Listen saving and investing both have their own value right and they have their purpose. Can’t say that investing is important and saving is not important or you can’t say that saving is important and investing is not important no both are equally important the reason behind this is simple both have their own purpose right saving is used for emergencies and investing is used for creating wealth. I hope you got it that investing and saving both are important for everyone. You can’t only be dependent on saving and also you can’t be only dependent on investing you have to have both.
Faq’s
Should I save money or invest money?
One should save money and also invest money because both are equally important.
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