Savings and investment, what's the difference?

[Suba]

There are still many people out there who think that savings and investment are the same, because both require allocation or setting aside money. Savings and investments can also be done periodically, such as every month or after receiving money. We can also use savings and investments for the short term and long term. So in your opinion, what is the difference between savings and investment?

 

[eLdavis]

Saving is mostly about keeping money for future use, while investing on the other hand is making your money work for you to generate more money in the future.

 

[Suba]

Apart from that, the forms of savings and investment are also different, savings are always in the form of fiat money which is easy to withdraw at any time either via ATM or mbanking or even through a bank teller, while investments are in the form of non-cash such as stock. bonds, property, securities, cryptocurrency etc.

 

[Kross]

Savings is keeping money aside without using it so that it can yield for you in the future. Investments on the other hand is the system where money is put to use in a productive venture with the hope of it producing more money.

 

[Xtynehappy]

As far as l am concerned, saving is the puting aside of money for future use while investing is the putting of money on business activities or programs for generation of profits or interests.

 

[Suba]

As far as l am concerned, saving is the puting aside of money for future use while investing is the putting of money on business activities or programs for generation of profits or interests.

I agree with you. The amount of money we save will always remain the same or match what we deposit, even though we get a little interest, whereas with investment there is a possibility of capital going up or down so it is not always the same, and if you put your main capital into a business it will also go up or down according to loss/profit

 

[Xtynehappy]

For me l think that between the two l would go for the investments. There is return of investment on that venture.

 

[Starmix]

Semantically, they are different. Saving means depositing the money in the bank for a plan either to invest what you saved or buy a new car. Investment is an act whereby the person engages in something so money multiplies to add to his savings,

 

[Springtime]

They are different. Savings is putting money aside either at your home or deposited into your bank for future use. You may earn interests from savings and there is no loss of the principal amount. Investment is to make money work for you. You may invest in different instruments such as stocks, bonds or mutual funds. While investment helps your wealth to grow, there is also a risk that you may lose your money.