Everyone is looking for ways to have more money than they already have but more than anything, they are on a journey towards achieving financial freedom. Your financial goals may be different from others but we all have one thing in common - we want genuine ways that we can use to grow our money. That's what we are going to be taking about today as we differentiate the two terms - saving and investing.
This one is rather self explanatory, it refers to the process of putting money away for rainy days or big purchases such as a down-payment for a house, car etc. Usually you need to open a savings account with a banking institution.
— Interest rates offered by banks are not the same and they are in constant change based on economic activities.
— It's your responsibility to compare them and see which one offers competitive interest rates that will grow your money.
— One thing that you must know, saving takes time and does not offer the same results compared to investing. Banks want to make money and not the other way around.
When you invest your money, you are putting it away for a fixed period of time and expecting it to grow in value. There are various investment vehicles to choose from and this includes stocks (also known as shares), bonds, ETF's and more.
– It's not a secret that investing offers more value for your money.
— There are risks that are associated with each investment. Make sure that you understand them before committing.
— For shares you can use an online broker like Easy Equities which does not require a lot of money to start.
We hope this article has clarified both terms and you are now confident enough to adopt new money habits. If you still have any questions don't hesitate to ask via the comments section and remember to follow us for more informative articles like this one published daily.
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