2006-10-07 17:20:39 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
Savings Account/Money Market: You give your money to the bank and they promise you a maximum of 3% interest (hopefully, more likely to be 1 1/2 %). Then THEY invest it and earn up to 30% interest ( maybe more ). They are glad you gave them your money to invest, they earned money for themselves and their shareholders. No risk to you. Your money is safe.
Investments: You decide where to invest, hopefully with the advice of a broker or agent, and you have NO guarantees whatsoever. You can look at past performances of Funds (Mutual funds are pre-packaged stocks managed by a company like Van Kampen or Legg Mason) or Stocks to get an 'idea' of what they will do in the future, or you can risk your investment on a new stock offering. You can loose everything or your stocks can split and split again, leading you to becoming a rich man. Solid performing Growth Funds are the safest way to go when investing - but still no guarantee.
The rich get richer because they have the money to risk and usually the riskier the investment, the more money the investor makes in return. So, if you have the money to risk. Invest it.
If you can't afford to loose the money you have, save it.
2006-10-07 18:28:36 · answer #1 · answered by jesusisthe1foryou 2 · 0⤊ 0⤋
Investing is placeing your money in places that it has a chance of makeing alot more alot faster. There is a risk though that you will loose what you have invested. Saving is where you place your money in a bank account and let the bank pay you a small amount for long period of time, knowing without a doubt that you wont loose any of it.
2006-10-07 17:24:13 · answer #2 · answered by fdmedic85 1 · 1⤊ 0⤋
Investing and saving are one and the same. When you save money, you have to put it someplace, be it a bank, a mutual fund, under your mattress. Whatever you put your savings into is an investment. Or said differently, if you don't have any extra $$$ (which would be your savings), then you have no money to invest.
2006-10-07 17:23:23 · answer #3 · answered by TheSlayor 5 · 0⤊ 0⤋
Saving is earning interest. It is almost risk free, and almost always completely certain.
Investing is actively managing risk vs. return rate. Risk is variable in investing, and since the future cannot be known in this arena, the future is always completely uncertain.
The more risk you are willing to accept, the higher your rate of return. This is not possible in Savings.
2006-10-07 17:42:03 · answer #4 · answered by dredude52 6 · 1⤊ 0⤋
The goal of investing is to grow the money..And the purpose of saving is you are setting it aside to purchase something...
2006-10-07 18:28:48 · answer #5 · answered by swanny2213 2 · 0⤊ 0⤋
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2006-10-07 18:32:36 · answer #6 · answered by stock.trade 1 · 0⤊ 0⤋