Why You Should Save or Invest | Savings/Investment, Which Do You Prefer?

Today, you and I will quickly talk about the topic “Why You Should Save or Invest | Savings/Investment, Which Do You Prefer?”.

This has become necessary as a result of the very many emails and searches we have been receiving from several of our sites visitors concerning Why You Should Save or Invest.

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Why You Should Save or Invest | Savings/Investment, Which Do You Prefer?

Regarding the topic, I saw people arguing which is better on a forum. What do you think? Before you come and say investments is better or savings is better, you should have some valid reasons you can share with us. Ehh I think it’s high time you get your popcorn and have a sit.

Let’s see what both words mean first.

Savings is about keeping some money monthly, perhaps a certain amount into a bank account. Most times when people save, they look ahead to accomplishing a goal. It could be to buy a new house, a new car or even save to achieve future dreams.

Investing on the other hand is about putting a certain amount of money in something with the aim of getting an appealing interest when you get your capital back.

It could involve buying assets that may appreciate in value, investing in mutual funds or even stocks or properties. In the crypto world, investing could mean buying coins when they still have a low value, with the mind set of selling when it reaches a higher value.

Between Savings and Investments which is actually the best? It’s all about what you want. My preference may be different from yours.

The are three factors that may influence your decision to choose though. First is your financial situation at that point in time. Second, willingness to risk the funds you have. And the last factor has to deal with your goals, what you hope to achieve.

It’s usually best to save money to become an investor. A person without funds would not be able to invest. So saving is a step for investors.

It’s important to consider ones financial situation before thinking about savings or investments.

Because usually investments take a longer duration (or term) when compared to savings. It’s just like someone who invested in bitcoin when it was over $18k December last year.

If he is to convert the amount he invested then to fiat now, he would lose. So he would have to wait for a long time for bitcoin to appreciate madsively to avoid a severe loss.

Investments are also risky most times when compared to savings. You can lose your entire principal if you are not careful. The crypto market or stock market can easily get your cash burned.

Federal government bonds and treasury bills are the only kinds of investments that have low risks – where you would not get a high BP. Low risks comes with low interests rates, but definitely higher than that of savings.

But someone might say I earn interests on the money I have no my savings account, whatdo you think about that? When compared to investments, the interest is really low. I actually prefer to save money so I can use it for investments.

Leaving money idle in the bank is something that looks strange to investors.

I would say the choice is totally dependent on your preference. If you really want high returns on your money, then it is best to choose investments. If you hate risks, then just save your money.

That’s the much we can take on the topic “Why You Should Save or Invest | Savings/Investment, Which Do You Prefer?”.

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