In our economy today we have to really strive hard to survive. Because of the world's current situation, many people are having difficulty to put food on the table. Inflation rate is very high that's why we have to find a job in order to survive.
Most of us people wants to earn and have more money, that is why some of us save money and some of us invest their money. But which is really better between the two? What is the difference?
Well, saving is a type of activity where for simple people they accumulate money at home inside a piggy bank or some type of container that cannot be opened unless you will it for the purpose of enjoying the accumulated amount after, but it is not advisable because the money cannot circulate; or people leave some amount of money in their banks in order to accumulate the amount in the long run. People will purchase only things that are needed, and avoid buying unnecessary things or what we call "wants". But is this kind of thing worth the sacrifice until the end? Let's find out.
While investment in the other hand is somehow the same in terms of our personal discipline to also leave money for the purpose of making other businesses make used of it with a desirable return or interest income. Here is where we entrust our money for a long run benefit.
Before we sign deeper to which is really better, lets talk about banks. Usually banks have a very low interest rates per annum for the money that is being saved to them, usually in all the banks in the world, it has only an average of 0.55% per annum. So, if you save 50 dollars per month multiplied by 12 for one year, only 0.55% of that will be earn by the saver.
Let's talk about interest rates in investments. Even though in investing there will be risk involved in the process, it has a huge return, it depends on what type of institution you are in to, but stocks in those markets have high return per annum especially when you acquired preferred stocks. Nowadays average interest rates in the stock market is 10% per annum.
As it is discussed above, it is narrated that investments are more better and favorable to do nowadays, aside from the fact that it is generating more income to people passively, it is also giving them a huge margin in income if you compute the difference between the two.
Usually people have no guts to invest because of the risk that is involve in it, but I tell you, no business is aiming to be bankrupt, so probably your money will really gain something; and a little bit of tip, before you invest your money explore first about the company that you are investing before entrusting your money.
*Strong evidence about the conclusion above:
Have you ever seen or heard the advertisement that will pop up when surfing that says, "Bitcoin made me rich"? Absolutely yes, but have we ever see or hear about "savings made me rich"? Mmmmm I think I didn't see that kind of phrase in the internet. Those evidences from investments are strong enough to say who really is better, that is why if you haven't started yet, think twice.
In life, we have to take risk so that we can accomplish a desirable outcome in the long - run. The world is being run by businesses, without it the industry will fall down, so we need to take advantage of it and make use of it by doing investments. You will just invest your money and they will do the work for you, it's like not doing anything and yet earning compared to just saving your money to the bank will less than 1% interest rate per year, it's like putting your money in a box and it will be stagnant and no use at all.
This article is for you to realize the reality of the world, it depends on you on how to handle the situation. I'm not saying the saving is not good, I'm just emphasizing that you can do much better than that and you can achieve a more desirable life.
The most important thing on this world is making the right decision, whatever decision you will make, I believe it all has a reason, as long as we did not hurt no one, and we can call ourselves successful in any aspect.
Savings and investments are both good. It's your call to make, to make a difference in your life and in our economy.
