As I see it there is only investing. If you hold cash you're investing in a currency (the USD, Euro, swiss franc, etc).
Gold, diamonds, etc is also an investment.
A CD is a low yield, low risk investment account as is a traditional "savings account".
As I see it it is impossible to save money.
What do you guys think?
2006-07-04 21:31:40 · 4 answers · asked by Ender 6 in Business & Finance ➔ Personal Finance
Right...but money that you put into a bank or a cd is still money invested. You're INVESTING it in a bank account or INVESTING it in a CD. It's still investing.
2006-07-04 22:25:31 · update #1
My point is that even if you have cash under your mattress, you're not saving it, but investing in the US Dollar (...or you could have put Euros under your mattress instead, or Yen depending on which currency you thought would do best or was most convenient)
2006-07-05 07:22:51 · update #2
investment turns out to be the money u saved...................
2006-07-04 21:34:27 · answer #1 · answered by lookatumiss 3 · 0⤊ 0⤋
An investment is an action converting money into something else you'd expect to grow in value or give you some yield.
So putting USD under your matrace is no investment, by definition. And buying a new CD of Robbie Williams is no investment either, it's pure consumption. And, of course, there is no risk involved in buying such a CD because you know the result of a 100% financial loss.
Perhaps buying an original Beatles' record could be an investment, with risks, if you expect the value to grow.
Saving money has the meaning of deciding to consume later - so if you don't spend your money today, you may spend it later. Or you might invest the money and spend even more money later, considering a successful investment.
Could I explain you economics a little bit...?
2006-07-07 03:59:49 · answer #2 · answered by swissnick 7 · 0⤊ 0⤋
Saving money can be looked at more than 1 way.
You can buy gas today instead of tommorrow and if gas goes up a dime you have saved money.
If you buy a used dvd at a pawn shop for $5, you have saved over the full price of $15.
The other way is to put money away in the bank or cd. You are not investing in the currency, you are choosing to hold on to the money for later, either for a major purchase, retirement or whatever. You save it by not spending it today on stuff you don't really need.
2006-07-04 22:03:36 · answer #3 · answered by mslider2 6 · 0⤊ 0⤋
you can't invest money you don't have... and you don't have any money until you save it first...
people save to invest... they save for a house, they save to invest in a ROTH or IRA etc
plus you should have a ready stock of cash for emergencies
2006-07-04 22:28:53 · answer #4 · answered by yeeooow 4 · 0⤊ 0⤋