English Deutsch Francais Español Portugues Italiano

Economy: What is the difference between saving and investment?

2019-12-28 08:10:45

The topic of this guide is Economy and specifically in relation to this difference between savings and investment.

Certainly in the Economy there are many factors that have an important role, so we must have the knowledge of the difference between saving and investment, although it is considered strongly related, it is important to know much more about it, for that reason we have the content of This guide, let's see what brings us next.

What is saving?

We have by definition that saving is to save money that in a certain time, in the future, can help us meet a goal or meet needs in the Economy that come our way, placing it in a safe place and even generating interest, being several savings, cash, bank account and deposit options.

What is the investment?

We talk about the money used to obtain something that can then generate a profit, buy a good or financial asset are examples of this, this being the search for additional income, it should be noted that an investment represents a risk and for that reason we can have the possibility of receiving compensation, now we will go into detail about the difference between savings and investment below.

What is the difference between saving and investment?

Among the differences that exist between saving and investment, it is mainly that when making an investment we are delivering money that we cannot control, this is done in order to earn extra, when saving we have to say that when saving it we will not have additional input of money, only that we maintain control of this but renouncing the possibility of increasing it by investing, but in Economy it should be noted that the investment brings risks of loss.

There are 3 factors to consider in a possible investment, time, risk and liquidity, profitability unites these factors, since there is a greater risk it will mean that more profit we can obtain from this, the more time without control we have of the money invested the more we can earn, On the other hand, with savings at all times we will have the same amount of money, although when we want, the investment consists of waiting for a certain time, we will certainly have more when the waiting period is met but it can also be lost, so is the balance of the difference between saving and investment

In this way our guide is over, we explain in this about the Economy and directly and specifically the difference between savings and investment, what we hope is that these guidelines will be useful to our readers.

Other Articles Related

  • Economy: What is the difference between saving and investment?
  • How to save: What is the best way to save money?
  • How to save: What can I do to save effectively?
  • How to save: What percentage of the salary should be saved?
  • How to save: How to save money fast without spending it?
  • How to Save: How to prepare a savings plan?
    Other Recent Articles