Although from a small already known about finance, still when we grow up we do not want to expand its financial knowledge. Most people just know about how to earn money and spend money. In fact, there is still much to learn about finance so that we can minimize the mistake in financial management and earn from Fidelity netbenefits.
Well, one of the financial problems that often become a conversation among ordinary people is that they assume saving and investment is the same or saving one form of investment. Is that true? Apparently, the assumption is wrong alias is not true, because both have different meanings.
Savings and investments, in peel from the side of the definition, characteristics and types of products, are different. In order for your financial knowledge to increase, here are some explanations that must be understood about the difference of saving and investment.
Saving is a money saving activity that is set aside from daily or monthly earnings. Generally savings are kept in a safe place. Although from a small already taught to save in piggy banks, but in today’s era, most people have moved to a safer place, namely the bank. Well, those savings keep your money. Furthermore, money in savings can be withdrawn at any time when you need it.
Meanwhile, investment is the purchase of monetary assets that have value, where the value of the amount of funds that you invest can potentially increase and vice versa, decline. This investment also has a huge advantage over the long term, which can increase the amount of wealth owned.