2007-05-25 13:38:33 · 6 answers · asked by kamkurtz 3 in Business & Finance ➔ Investing
Savings is what you need to start investing. You can save 5000 dollars to open up a brokerage account for stocks. You can save to invest in a bond. You can save money from all ur investments for a rainy day.
my opinion
2007-06-02 01:06:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I don't believe many people ever confused saving with investing, but successful investors often regard investing as a form of saving.
Savings accounts are going the way of the dodo. Banks want to pay less than 1% on savings accounts, which is below the rate of inflation. So, in this scenario, savers are really "losers" (in the sense that, with every passing day, the purchasing power of the money in their savings accounts is decreasing).
2007-06-01 14:33:41 · answer #2 · answered by SCOTT M 7 · 0⤊ 0⤋
First of all, one needs savings habit to meet the future requirements. That is to say,
spend less than what you earn and keep aside the balance for a rainy day.
Now, days are changed. People started eating tomorrows money today itself. People started spending more than what they earn. This kind of living on borrowed capital, use of credit cards and getting various personal loans to meet the daily needs & luxary living started searching ways and means to stretch the existing money.
So people started searching various investment opportunities to get more returns for their savings. Better returns attract more risk. With this, objectives changed and some people started getting confused savings with investing and vice versa.
2007-05-31 13:42:57 · answer #3 · answered by arpita 3 · 0⤊ 0⤋
Well, for quite awhile " saving" just didn't do much for you...barely kept up with inflation ( except of course in good ol' Jimmy Carter's days ...17% CD's !! )
So , sort of in a self- preservation mode, people started to become more aware of the possibilities of " investing" ( mutual funds, mainly) to at least make some money on their " savings"....some people got burned really bad in the tech-bubble...the more conservative ones sort of eked through it somehow...with the PC becoming available to everyone...people started " dabbling" even more...
Now you can't hardly get through a cup of coffee at Micky D's without hearing somebody talking " market moves".... " Say, Bubba, didja see that there COMARCO today? "
2007-05-26 02:49:38 · answer #4 · answered by jebediabartlett 6 · 2⤊ 0⤋
Because banks want more than just your "saving" money. They want your investment money and before they had brokerage arms, their ads advised to "invest" in their CD's.
2007-05-25 22:34:44 · answer #5 · answered by gosh137 6 · 0⤊ 3⤋
In one word: Greed
2007-05-25 23:14:01 · answer #6 · answered by Alletery 6 · 0⤊ 3⤋