Finding the balance between your Savings and investing

in #hive-1679222 years ago

Hello Everyone,

These two financial terms are very important in achieving our financial goals. While they are most times mistaken for another by people, they are two totally different activity
and serve different purposes.

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Both method invest setting particular funds aside to meet a future need or goal. Saving act as a cushion in the area of our immediate needs in terms of emergencies while investing seem to grow our wealth. The latter is more risky.

In the appointment of money for our savings or investing it is important to take into consideration of ensuring more security in our immediate needs while taking more risks in the area of investing.

Ascertain our Short term and long term goal will help in whatever strategy we take. While the short term or immediate goal is most time the priority we must also pay attention to long term. Our goal of satisfying both the immediate and the future will help a lot in determining that.

My recommendation is placing more attention or priority on savings at first then building our investing. As our emergency funds grows to an extent, more investing should be done. At the end of the day, it's all securing your self and growing your wealth.

Thanks for Reading

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I have to confess, I don't really see them as separate things. I just see them as the same thing but with a different time perspective.

For me, Saving is more long-term and money I do not plan, or think I will need, in the near future. So that usually means longer-term investments.

Investment can be anything from short to long-term. But I guess the key difference for me is that I need to be able to access these funds fairly quickly.

Atleast that's how I see the main difference.

But I guess the key difference for me is that I need to be able to access these funds fairly quickly.

Yeah. They are quite similar, savings is more accessible. The difference between the two is their level of risk. Saving is more secured as it stored up for later use or emergencies while investing is to build your value or worth. The latter is more long term

Agree with you there =)

Looking forward to reading what you post in the future =)
!LUV