8 Answers: How Investing is Different to Saving Money

Question

Anyone like to share more about the difference between saving money and investing money for returns? I am investing now and also saving and would just like some more clarity on the topic. Thanks.

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collier 5 months 8 Answers 185 views 0

Answers ( 8 )

  1. Well if you think about saving there is no return on investment. So while you can save let’s say $500 per month at the end of the year you only have $6000.

    While if you invest $500 per month with a 10% return you make $6600, and that’s not factoring in compounding interest. So you can see just from this small example how investing helps you to grow your money while saving just sits flat and actually depreciates with inflation.

  2. Investing money makes money, while saving only saves it.

    • Saving is also essential to start investing in the first place so saving in many ways is just as important.

  3. don’t bother with just saving money and putting it in a bank. no interest there. invest money and grow it that is how wealth is created.

  4. saving is for losers, investing is for winners

  5. When saving you do not get returns on any investment, only loss from inflation. Put 5k under your mattress 50 years ago and then spend it today… major loss.

  6. Saving is important in the beginning but to grow your money and increase your net worth you must invest and compound. Invest and compound some more.

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