Saving or Investing

In: Business and Management

Submitted By Naraa90
Words 1148
Pages 5
Saving or Investing
How do you decide where to put your money?
People are well aware that they need to save money. That being said saving in itself is not really going to help you; you have to do something with the money. That means that you will need to invest your money. A lot of people are afraid to do this but there is really no reason to be afraid if you know what you are doing.
What are the differences between saving and investing? Your "savings" are usually put into the safest places or products that allow you access to your money at any time. Examples include savings accounts, checking accounts, and certificates of deposit. When you "invest," you have a greater chance of losing your money than when you "save." But when you invest, you also have the opportunity to earn more money than when you save.
Investing is, well, everything else. Instead of putting your cash in a savings account, when you invest you are generally putting your money into company shares, government or corporate bonds or property – either directly or through a fund. This involves accepting the risk you may get back less than you put in, which is why the rewards – when they do come – are higher. Done well, investing should protect your money against the effects of inflation and give you a stronger return, compounded over time.
Of course investment and saving are not separate things; in order to have money to invest you will need to save it. The important point is that you are better off investing the money that you do save rather than simply putting it under your mattress. In order to make sure that you have money to invest you need to make sure that you have a savings plan. The best way to do this is to make it part of your monthly budget.
One of the reasons that people don't invest their money is that they are worried about losing it. While this is not an unreasonable fear it…...

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