To have a base, it is necessary to save, and to be able to invest it is essential to have a saving but the investment itself can also represent savings, since the money invested does not lose value as it happens with the money simply saved.
Saving and Investing are Closely Related Issues
To have a base, it is necessary to save, and to be able to invest it is essential to have a saving.
But the investment itself can also represent savings, since the money invested does not lose value as it happens with the money simply saved.
By saving as a mere mission of saving money , the initial value of money is not maintained, since there are external factors such as inflation that can cause that over time, that reserved money does not reach to allocate it to the initial idea.
Therefore, choosing between alternatives that make money grow and work is the best option.
Below, we explain everything you need to know about saving and investing intelligently.
What is saving and what is it for?
Saving should be synonymous with preserving money . Banks are a safe place to keep your savings, and you can also access your money when you need it without paying anything.
But in a normal account, it will not generate any interest . Low risk means low reward. But that’s what a savings account should have, a place where you don’t lose money.
Depending on the interests of each one, saving could serve as many things as savers exist . The most advisable, in the first instance, is to save enough to have an emergency fund that acts at times when you need more Joshua Man.
Having adequate savings is extremely important to avoid having to resort to financing .
What is it and what is the use of investing?
You need to have decent savings before jumping into the world of investment . And here comes the difference between saving and investing.
Investment is used to build wealth . Investing is long term, exposes you to market volatility , and faces the inevitable: taking risks .
If all goes well, the interest rate you earn will be higher than the one offered by the bank, inflation and other similar investments.
But be careful We advise you to invest whenever you have enough savings to meet your needs. You must be clear that the investment does not give you guarantees to earn money overnight, but it will take time to bear fruit.
Therefore, we must be sure and with a margin to be able to bank that wait.
The importance of saving your money
Saving is essential to have an economic peace of mind and to meet short and long term goals.
Saving intelligently means becoming a habit that is achieved with discipline; you have to learn it and practice it day by day , knowing how to choose in which situations to buy and in which it is better to save that money.
The importance of investing your money
Investing can be a good option if you allocate a fixed monthly amount to your savings. It will help you to acquire a faster patrimony for the interests that are generated, to ensure the education of your children, or to improve the lifestyle at the retirement age.
Today it is a viable tool to invest in financial instruments of various kinds, with products oriented to national or international investment, in fixed or variable income.
Counseling is vital to your savings can be invested wisely and diversify into products that help you achieve your financial goals and also give you cash when you need it .