Some times, we assume savings is investment. However there are a whole lot of differences between savings and investment. It’s good we are in the know of them. Below are a few:
- Savings is short term while investment is long term
- Savings has little rate of return and little or no risk of loss while investment has potentials for higher rate of both return and risk of loss
- Savings is for emergencies and purchases while investment is for future large expenses and life events
- Savings is putting money aside gradually while investment is to grow your money to help in capital formation and providing returns
- Savings is highly liquid while investment has low liquidity.
Bottom line, know when to invest and know when to save.
We believe in you!
To your financial independence and freedom
Know the Difference!
