Learn Easily with Saving and Investing Homework Help
Saving and investment bears some different meanings to different people. Some people believe in keeping money in the bank, while some feel like buying stocks is a way of savings. An economist on the other hand will interpret savings as
- Consume as little as possible in the present
- By consuming less now, you can consume more in the future
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Want to know more about investment?
Investment generally denotes a lot of economic activities. An economist is likely to describe investment as
- Purchasing of some durable goods
- Private investment is mainly classified into three categories. They are residential investment, non residential investment and inventory investment
- Business fixed investment includes non residential structures and other equipments
You must learn these two basic saving and investing terms in Economics. You can forget all your worries by going through saving and investing assignment help.
Let us now discuss about the difference between these two terms, savings and investing.
Difference between savings and investment:
- Savings mean funds that must be liquid and are low risk funds. Whenever you need some emergency money, you can use it from your savings.
- On the other hand, investment means building of wealth. Although investment involve a huge risk factor, but also yields much greater returns.
- Savings are generally used to meet all your immediate needs. We all save money to save ourselves from certain unexpected expenses.
- Whereas investment denotes a long term like more than six months. It will give you more returns over the growing period of time
- Savings when stored in a secured vault will remain safe. If you keep this money in the savings account it will bear some nominal amount of return.
- On the other hand, when you invest your money in long term products like gold, mutual funds, stock will generate more profit over the years but you will also have to bear the risk factors.
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