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     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 2233 Registered: 05-2011 Posted From: 50.131.121.40 Rating: N/A |
Saving vs Investing Saving and Investing represent two distinct ways of managing money. Understanding the difference helps you make informed choices for your financial needs. Saving means seeking to preserve assets that you accumulate over time. Stability of principal is a higher priority than return potential. Principal is guaranteed but offer only very low return potential. There is a risk of principal not keeping up with inflation resulting in loss of purchasing power. When you invest your money, you are seeking growth. Investing usually involves greater risk to principal than saving and offers higher return potential. Principal is not guaranteed but it offers possibility of higher returns with greater inflation protection. Why Should You Invest? Investing is a good tool for building up the funds needed for buying a house or putting children through college and high expense telugu marriages. Long-term investing is an essential element of retirement planning, since most people do not have pension plans or cannot accumulate enough savings without some long term growth of principal. Risk and Reward One of the more basic relationships in investing is that between risk and reward. Investments that offer potentially high returns are accompanied by higher risk factors. There is no free lunch. This is the cornerstone of modern finance and forgetting this often gets investors in trouble. High returns and low risk just don't go together. Don't waste your time looking for any such investments. If you do find one, it is a scam. dreams don't work unless you do |