Savings is money set aside for a specific purpose.
1. Most of the time for short-term and medium-term goals.
2. Safe but have a low return on investment.
3. Savings can be withdrawn easily.
4. Savings is considered dead money.
5. Savings is a seed. (Unless it is planted it will not grow)
Investment is money set aside to make it grow and multiply.
1. Focused on long-term goals.
2. Gives a higher return but is riskier.
3. Takes time to be sold and accessed.
4. Investment makes money work for you and gives you passive income at the same time.
5. Investment is seed money. (When it's planted it generates income)
Everyone has seen a bank and wondered at some point: why are banks so rich? It's easy to assume they just have lots of money, but it goes deeper than that. Banks make their wealth through careful investments in the stock market and other areas, as well as strategic partnerships with businesses.
When it comes to making money, the banking industry is one of the best around. Banks generate their income through various activities and investments, such as charging fees for services like debit card transactions or wire transfers, providing loans to customers and earning interest on them, collecting deposit accounts from individuals and corporations, and investing in stocks, bonds, and other financial instruments. Banks also offer financial advice and products to their clients, such as mutual funds and insurance, and make money from these services.
Now, think about this.
Why should we allow our banks to use our money?
Why can't we use our own money to grow our money?
Why do people opt to save than invest?
If I were you, learn and start investing now. Study and invest in the stock market or cryptocurrency even. These are hot items nowadays.
If you want to learn more about investments, check the video below on "How to invest for beginners".
