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Why investment is better than saving money?

Savings accounts are safe. You aren’t risking anything when you save and in return, you get to keep your money.  That’s all great, until you actually need your money. At that point, you face two choices: either pay a high interest rate on a credit card or take what you need out of your savings and face the risk of losing some or all of your money. If you don’t like those choices, it’s time to think outside of the box and focus on investing instead of saving.

Investors make money simply by investing. They don’t have to slave away to earn interest on their savings. In a sense, that’s the difference between an investor and a saver – an investor makes money even when he or she is sleeping by the ocean side, while a saver has to work just to make the same amount of money.

No doubt saving money is one of the best and simplest ways to manage your income as a start-up. You can set money in your saving account and then you can use it when needed. Moreover, you don’t need to file for any loan or credit card for saving purpose. However, some people are not able to save their money and just wasting it lavishly. If you want to achieve financial freedom and want to spend your money wisely then you must get clarity about why investment is better than saving money. You can even take share market investment tips from investment advisory.

The benefits of investing and analyst equity research are often touted as greater returns, which are partly correct. Investing can enable you to build up a larger nest egg due to long-term compounding interest that you would not likely see by saving. Although much of the focus tends to be on the returns generated by individual companies, the most valuable benefit that you can acquire from investing is even more fundamental: the ability to better protect your assets.



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