Hi Friends,
In this article I am going to tell you the difference between saving, investing and speculating of your valuable money. Most of the people think that saving and investing money are almost same. But these are different.
Let's start with saving
1) Saving:- It means to protect your money for shorter period of time maximum 3 years. You are keeping your money in a safe to achieve some goal after a short period of time. This is a traditional way of money management. Here rate of interest is fixed and you will get your money after particular time with that rate of interest. Here growth of money is very slow. We may keep our money in saving accounts, money market accounts, certificates of deposit.
2) Investing:- In this process you keep your money for a long period of time that's for at least 15 years. Here growth of money and gain is high. But you have to wait for a long period and there is not fixed rate of interest. You will receive your money according to market value. Here Risk is high as compare to saving. But benefits are also high. You may keep your money in stocks, Bonds and Real estate.
3) Speculating:- Here you don't keep your money any account. Here you gamble with your money in casinos. Here growth of money is very high. But risk is also very high as in a one day you can become rich or you can lose everything.
To sum up save to protect your money, invest to grow your money and speculate to gamble your money.
So always think before that how you want to manage your valuable money.
In this article I am going to tell you the difference between saving, investing and speculating of your valuable money. Most of the people think that saving and investing money are almost same. But these are different.
Let's start with saving
1) Saving:- It means to protect your money for shorter period of time maximum 3 years. You are keeping your money in a safe to achieve some goal after a short period of time. This is a traditional way of money management. Here rate of interest is fixed and you will get your money after particular time with that rate of interest. Here growth of money is very slow. We may keep our money in saving accounts, money market accounts, certificates of deposit.
2) Investing:- In this process you keep your money for a long period of time that's for at least 15 years. Here growth of money and gain is high. But you have to wait for a long period and there is not fixed rate of interest. You will receive your money according to market value. Here Risk is high as compare to saving. But benefits are also high. You may keep your money in stocks, Bonds and Real estate.
3) Speculating:- Here you don't keep your money any account. Here you gamble with your money in casinos. Here growth of money is very high. But risk is also very high as in a one day you can become rich or you can lose everything.
To sum up save to protect your money, invest to grow your money and speculate to gamble your money.
So always think before that how you want to manage your valuable money.
Good one.... According to me save is the best option...because your rate of interest is going to increase moreover you can get your money whenever it is required
ReplyDeleteIt depends upon you
DeleteYou may also try in investments like mutual funds. Money is also safe there.
DeleteYup.... Acc to me In investment you block a chunk of money moreover period is fixed you can't withdraw...if you withdraw somehow you won't get the desired result on which you were investing
DeleteYeah that's true... It's just for higher profits with higher risks
DeleteThanks for providing such a worthy information.
ReplyDeleteI was wondering from a long that where do I invest.
Thanks for this valuable info
My pleasure
DeleteNice one. Keep going,keep growing.
ReplyDeleteThanks Vageshwari
Delete