Investing versus saving: why the difference matters
Our earnings on a monthly basis generally come to our bank accounts. This could be in the form of a salary (in the case of being employed) or in the form of a surplus (from being involved in a business).
Money lying in bank accounts or bank deposits earn a very low level of returns. These are not enough to give you gains or income after you have stopped earning a regular salary or business income.
To secure your financial future and make you financially independent, you have to get your money to work harder. This can be achieved by investing some part of this money that you save on a regular basis.
Savings → You are working hard
Investments → Your money is working hard
Savings and investments are different, but both are equally important. Here is how they compare.
Savings and investments are different, but both are equally important. Here is how they compare.
Money has to be invested to derive higher returns over a longer period of time. However, investments come with risk and risk has to be managed. Managing risk requires time and knowledge. If you would rather manage your business or job and spend the rest of the time living a balanced life, then you have to invest your money where professional managers can manage your investments.
Investing is a necessary step towards securing your financial future. Take that step now!
