Hello guys Today we will talk about investing and saving . So today I will cover topic related to investing and saving that are ---

What is saving ?
What is investing ?
Key differences between saving and investing?
What we do first ? Saving or investing

In India many people neither invest there money nor save , they only spent their money and when emergency arises they take loan .

They do not do investing such as invest in real estate , land, flat and especially in share market it's because someone in their family or friends once told them that share market is very risky, you will lose everything in this market. Partially they are true , because share market is suffered with many scams like Harshad Mehta scam , Ketan parekh scam etc. but SEBI is also their to govern the regulation and protect the interests of the investors.

Not only because of scam , investors lose their investment because of darts on the stocks which means they only pick share which they like or their friends said without proper fundamental analysis.

Risk in share market arise when you have no knowledge of shares and you darts on shares .

For example - if you don't know how to swim and you jump in water then their is risk that you will die.

Some people also don't save their money for future emergency because they think saving money means when you spent your money and if some money is left after the spending then it's saving. And there is possibility that after you spent , no money is left to save.

WHAT IS SAVING ?

Saving is kept your money aside for future emergency requirement before spending your money. It's a safest bet on your money as their is no risk of losing your capital.

And they are liquid funds which can be used whenever you need them .
You can save your money in form of cash , in saving account etc.

WHAT IS INVESTING ?

Investing means making money from money in simple we can say kept aside our money for purpose of growing in long term.
They give good returns on our money with respect to risk taken. As generally this money could not be used for future emergency need as this are less liquid funds .

Key differences between saving and investing --

Risk

Risk is a factor due to which people generally resist investment and do saving.

And when you save your money in bank, all you have at hand is more or less the amount you intially invested at the time of withdrawal it's because the returns you earn on that money gets adjusted for high inflation.

In investing, it allows you to get higher returns with some risk because of volatile market. But you can manage your risk by choosing suitable investment options in your portfolio.

Liquidity

Liquidity refers to the ease with which you are able to encash your money.

Saving are highly liquid as they are the you kept aside and are not in use.

And in investing , there is some lock in period which means you could not convert your investment in cash form quickly .

But what We do first ?

Saving should be first priority as these funds you can use when there is emergency of cash and not to invest your emergency saving because the market is very volatile and when there is emergency of cash and market is down , it may happen that you have at hand is more or less the amount you intially invested .

But if you want to grow your cash or we can say when you have to make money from money , you shall start investing as these can fulfill your future dreams and desires.

As Robert kiyosaki has said- pay yourself first .

Suggestion- suppose your income is X amount , first you kept aside 25% from X for saving OR first kept aside 15% from X for saving and 10% for investing monthly.

Then do necessary expense from the remaining income.

Conclusion

As after reading this article , you have learned difference between investing and saving.

Saving should be first priority afterwards you should start investing.

As savings funds will give you financial security and financial stability.

Investing Vs saving which is more important ?

And they are liquid funds which can be used whenever you need them .
You can save your money in form of cash , in saving account etc.

Investing means making money from money in simple we can say kept aside our money for purpose of growing in long term.
They give good returns on our money with respect to risk taken. As generally this money could not be used for future emergency need as this are less liquid funds .

Key differences between saving and investing --

But what We do first ?

Conclusion

Related Post

Investing Vs saving which is more important ?

And they are liquid funds which can be used whenever you need them .You can save your money in form of cash , in saving account etc.

Investing means making money from money in simple we can say kept aside our money for purpose of growing in long term.They give good returns on our money with respect to risk taken. As generally this money could not be used for future emergency need as this are less liquid funds .

Key differences between saving and investing --

But what We do first ?

Conclusion

Related Post

And they are liquid funds which can be used whenever you need them .
You can save your money in form of cash , in saving account etc.

Investing means making money from money in simple we can say kept aside our money for purpose of growing in long term.
They give good returns on our money with respect to risk taken. As generally this money could not be used for future emergency need as this are less liquid funds .