The Main Difference Between Investment and Savings
Investment and savings are usually used interchangeably because of their similar end goal. They are useful tools for financial security in future. The two are however completely different financial actions. Savings will involve laying away part of your disposable income for use in future. This can be carried out at home or through one of many different savings accounts. Savings usually cover unexpected emergencies and large expenses such as college education expenses. On the other hand, investment refers to money that has been committed to a risky opportunity for future appreciation of value or generation of income. The investment will require a capital, cash or savings outlay on an asset that will result in financial growth. Investment can range from jewelry, bonds, stocks, real estate and other similar ventures. Any…