Sunday, December 11, 2016
Savings vs. Investing
From this investment project I have seen a great difference in the money accumulated between saving and investing. Saving in a savings account has a low annual rate of return, 0.01% but the company I invested in had a whopping 19 and a half percent return. Investing clearly has a higher reward than saving but, is it that easy? I did some research on investing and there are risks. Lets say you are investing in a company and the company doesn't do so well and your investments go down. You can either lose some money or lose all your money. But wait, investing isn't a bad choice. Investing can give huge rewards and achieve financial goals that you wish for. It mostly depends on how you invest your money. They are different ways you can invest your money and from the research I have done, there are smart investors and investors. Wait, but what about saving? Saving your money has minimal to no risk. Savings also earn interest but low interest. When you save, you are putting a part of your hard earned cash to the side every month or so and letting it build up. Saving and investing are two different ways to help you build your money. You can either make interest or make profit. Of course, I would love to make huge amounts of money and become rich as Tai Lopez so I would choose investments over savings. What do you guys think? Investing or saving?
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Thanks for posting this! I think after this project many of us probably believe that everyone should just invest in a company but most of us don't know about the risks of doing so, unlike saving where there are no risks.
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