These two words are used interchangeably in personal finance, that they are tend to be misinterpreted or seen as the same thing, in this article we will be looking at their differences and how each of them is unique.
Saving is the process of keeping money for the purpose of using layer, it is gotten from the word which translates to protect, so when you save money you are basically keeping them with your financial institutions so that you will make use of them later, there are savings that appreciates in value such savings are known as a fixed deposits, they grow very slow and the returns are really marginal.
Investing on the other hand deals with taking risk by buying or acquiring a piece of a company or a product to make more profits later, dur to the risky nature of investing there is also a high upside, when investments returns a significant percentage then the investors get rich, investing deals with statistics and risk.
People that save are mostly risk aversive while investors on the other hand are avid risk takers, Investors can get rich from their investments, but it is impossible for a saver to get rich because the downsides are very low.
Saving is the process of keeping money for the purpose of using layer, it is gotten from the word which translates to protect, so when you save money you are basically keeping them with your financial institutions so that you will make use of them later, there are savings that appreciates in value such savings are known as a fixed deposits, they grow very slow and the returns are really marginal.
Investing on the other hand deals with taking risk by buying or acquiring a piece of a company or a product to make more profits later, dur to the risky nature of investing there is also a high upside, when investments returns a significant percentage then the investors get rich, investing deals with statistics and risk.
People that save are mostly risk aversive while investors on the other hand are avid risk takers, Investors can get rich from their investments, but it is impossible for a saver to get rich because the downsides are very low.