Whether to save or invest depends on financial goals. But it also depends on the risk you are willing to take your money.
Saving and investing concepts are intrinsically linked in the economy. Especially because you can only invest up to savings. See the differences between savings and investment to complete what the best option for your budget.
Saving vs. Investing
Saving means, more or less, spend less, avoid waste and save money. For unforeseen or purchase of a good or service that was planned well in advance situations. But it also means having to save this money without risk. Hence the bet for savers that focuses on fixed deposits or certificates of indebtedness.
And invest monetize means savings. It is to multiply the money. An investor is the one that allocates part of its income to a product that can grow your money, your wealth. You can do this in a company, equities, real estate or other financial products.
Better to Save or Invest?
But what says the situation? Is it better to save or invest?
In the current scenario, saving remains the watchword. And investment is a risk that can not lead to the desired return. Primarily by market volatility and trend of lower interest rates.
And in the case of little or no experienced investors, the greater the risk. Ideally, save your settings so you can move or redeem anytime. If you continue to focus on saving and clearly define your investment strategy, will have an initial contribution which will allow access to the most profitable investments, with lower costs and greater chance of profitability.
Tips to Save Money Every Day
- Check all costs (monthly expenses and annual expenses) and household income, for areas where savings can be made.
- Take actions that help save home – turn off the stand-by appliances using energy saving light bulbs, energy efficient equipment with the classification.
- Save water, putting flow restrictors on faucets and reusing rainwater.
- Set a timer or clock near the shower with the clock of time you spend in the bathroom and better time management.
- Preferred generic drugs whenever possible.
- Make a list of items to buy at the grocery store and analyze well the price per liter and kilogram of product, avoiding the promotions that may be more expensive.
- Disconnect the pilot of the water heater when not in use frequently and save cooking time, always putting the bread in pots.
- Save on spending away – avoid eating out, take your lunch to work, reduce the intake of coffee and dispense monthly gym.
- Avoid use credit to buy gifts and choose to make homemade gifts.