Investing money is different from savings.

[Sim_card]

Saving and investing are both important in life. Saving means keeping money for the future, and it helps when you plan. On the other hand, investing can grow your money, but it comes with risks. You might earn more, but you can also lose. Both are important for a good financial plan. But before you invest, it’s smart to learn and understand how it works, so you can make better choices.

For you to be able to have savings and later use your savings to invest, so that from your investment, you can get funds to be saving, you must have be good in financial management. Because that is what will enable to plan and use money wisely for the right needs and put less attention on your wants.

[Zed0X]

Just keep it simple, invest when you have enough savings already. There is a term called 'emergency fund' which means you set a budget for a certain amount of time (common is 6 months). That fund will help sustain you and your lifestyle even if you suddenly stopped earning money.

[DragonF]

Investing and savings is of two categories,they are both importants to humanity,savings means to store for future times to come,savings takes place when planning is ahead off,while investment comes with risk, but also the potential for higher returns,the both are very important factors for a healthy financial plan,but when going to investment you have to educate yourself before taking any positive decisions.

Investing is always preferable to saving. Investment, as you mentioned, can yield returns, but saving does not yield returns unless it is fixed savings, and banks benefit the most from your fixed savings because the money is invested and they make money from it while paying out peanuts in interest, whereas they have made a huge profit from the savings.

I understand that people consider risk before making an investment, but they also fail to recognize that even saving involves risk. Savings can also be lost in the event of death or an emergency situation in which it becomes difficult to access previously saved funds because they have not reached the maturity date, and the person may be denied his savings.

Thus, there is risk everywhere, so it is preferable to take a higher risk and earn returns than to take a lower risk and receive almost nothing in return.

[0t3p0t]

Just keep it simple, invest when you have enough savings already. There is a term called 'emergency fund' which means you set a budget for a certain amount of time (common is 6 months). That fund will help sustain you and your lifestyle even if you suddenly stopped earning money.

Yeah exactly and this "emergency fund" thing is the most difficult one to do especially for people like us who have no stable source of income. I know this is one of the most important savings we need to have but unfortunately only few can achieve it. For me personally this is my priority and I am working on it little by little.

[albon]

The portion of income that people keep for future consumption instead of spending it for present consumption means that they want to live with that money in the future. But investing is a bit different because investing anywhere has less risk and everyone does it to increase their money. The money saved can usually be used as needed and has less risk of losing value. Also you will not get much profit from your savings but if you invest then there will be a lot of profit potential. Investment has a big target that you want to get big funds.

[Dr.Bitcoin_Strange]

Investing and savings is of two categories,they are both importants to humanity,savings means to store for future times to come,savings takes place when planning is ahead off,while investment comes with risk, but also the potential for higher returns,the both are very important factors for a healthy financial plan,but when going to investment you have to educate yourself before taking any positive decisions.

Both investing and savings are important to a person as they both may sometimes work hand in hand. Yes, we always hear about the importance of emergency and other back up funds to an investor and his investment portfolio, the emergency funds can actually be in form or savings, because not everyone can afford to put or keep a large amount of fund for emergency, so most investors, especially the smaller investors tend to save their emergency funds gradually while they also proceed with their investment.

[UNIVERSE]

Investing and savings is of two categories,they are both importants to humanity,savings means to store for future times to come,savings takes place when planning is ahead off,while investment comes with risk, but also the potential for higher returns,the both are very important factors for a healthy financial plan,but when going to investment you have to educate yourself before taking any positive decisions.

Both saving and investment are for the future. Saving for urgent needs, it can be used instantly. Meanwhile investment, it is intended to gain the values. Well, saving may have no risk, it is only declining a bit of its values. Meanwhile investment surely has a risk, but it possible to raise its value significantly as well. So, the risk is commensurate with the potential profits. Anyway, to deal with this, we must have proper knowledge for sure.

[New Ranger]

Both investing and savings are important to a person as they both may sometimes work hand in hand. Yes, we always hear about the importance of emergency and other back up funds to an investor and his investment portfolio, the emergency funds can actually be in form or savings, because not everyone can afford to put or keep a large amount of fund for emergency, so most investors, especially the smaller investors tend to save their emergency funds gradually while they also proceed with their investment.

In my terminology I call it "Ready Fund" and it is very necessary because if there is an important and urgent incident we can easily take it without having to whine here and there asking for help from others.

If the financial condition of the person we are asking for help is good and strong if the condition is the same as the same condition in need of course reluctant to ask for it. Yes. I agree with your statement above.

[JoyMarsha]

Of course that the investments are not the same as savings.
But then again any decent investment can grant you at least 5% returns per year, which does not sounds so much, but if you are in such investment for the long run it can pay off very nice

So true. Investment brings much returns in the long run compared to when it is done for the short term. People thoughts of investing for the long term because of the benefits they stand to gain. Well, every human is supposed to save and invest. Save for the rainy days, and invest for both the dry and rainy seasons for the betterment of their future

[Findingnemo]

Of course that the investments are not the same as savings.
But then again any decent investment can grant you at least 5% returns per year, which does not sounds so much, but if you are in such investment for the long run it can pay off very nice

So true. Investment brings much returns in the long run compared to when it is done for the short term. People thoughts of investing for the long term because of the benefits they stand to gain. Well, every human is supposed to save and invest. Save for the rainy days, and invest for both the dry and rainy seasons for the betterment of their future

Many doesn't care about savings, either they are too skilled to lose their job or money making opportunity or just too dumb to realise the uncertainty of future.

Money is important in our life but often people get fooled by the quotes like you can't buy everything with money.

[bitterguy28]

Many doesn't care about savings, either they are too skilled to lose their job or money making opportunity or just too dumb to realise the uncertainty of future.

no one is really skilled enough to be completely secure of not losing their job because you never know what circumstances you can end up with it may not be your fault but the company could be bankrupt or the industry could crash so not everything is just down on your performance

Money is important in our life but often people get fooled by the quotes like you can't buy everything with money.

it is true anyway but life would still be much easier if you did indeed have money in the first place you can worry about happiness and intangible things later on after you have enough money to survive

[0t3p0t]

Just keep it simple, invest when you have enough savings already. There is a term called 'emergency fund' which means you set a budget for a certain amount of time (common is 6 months). That fund will help sustain you and your lifestyle even if you suddenly stopped earning money.

I like the idea of having emergency funds and I agree that this is a must for each and everyone but maybe I am not alone on the part that I don't personally practice saving for this due to the fact that my earning isn't enough for that right now. Since I don't have a stable job that would be very tough and hard for me to save. Hopefully if I earn extra money I will definitely save for that purpose.

[Findingnemo]

Many doesn't care about savings, either they are too skilled to lose their job or money making opportunity or just too dumb to realise the uncertainty of future.

no one is really skilled enough to be completely secure of not losing their job because you never know what circumstances you can end up with it may not be your fault but the company could be bankrupt or the industry could crash so not everything is just down on your performance

Money is important in our life but often people get fooled by the quotes like you can't buy everything with money.

it is true anyway but life would still be much easier if you did indeed have money in the first place you can worry about happiness and intangible things later on after you have enough money to survive

I met quite number of people who is just perfect with what their job so even if a company bankruptcy there will be soon an offer from multiple companies even for better salary but they might be like 5% only. So as an average joe we need to make sure of every possible way to secure our future which means make more money as much as possible before something goes wrong.

[UNIVERSE]

Many doesn't care about savings, either they are too skilled to lose their job or money making opportunity or just too dumb to realise the uncertainty of future. Money is important in our life but often people get fooled by the quotes like you can't buy everything with money.

I think most people care with savings. If the people have no savings, they may have no enough money for savings. We know that in most countries, we are getting more difficult to get proper jobs. And many people stopped from their regular jobs because they companies are closed. Well, I think people quite understand with the quote. Only people who live in the small village who don't push hard to get money because they have many basic necessities that they can take directly from natures.

[bhadz]

Because with savings, we have peace of mind. Don't believe the rich of what they tell you about being cash broke, they have the cash reserve for in case of emergency they are in need of money, they can spend it however they want. Trust me, whatever they want to buy, they can do it although they are telling that they have stocks to be offered to the bank so that they can have cash and loan, that's just another thing for them. They still have a lot of cash that are ready to be spent for anything they want. As much as possible, I am also starting to grow my savings aside from my crypto holdings.