Financial planning is important for a better tomorrow. Financial planning is required for emergencies, to achieve long term goals, retirement and inflation. It is useful to manage income effectively. Saving and investment are two important factors of financial planning.
What is the difference between investment and saving?
Primary goal of saving is to secure money and investment is to reach financial goals.
| Saving | Investment |
|---|---|
| Short term goal | Long term goal |
| No risk involved | Generally low to high risk |
| Lower returns | Potential to get higher returns |
| Easy access to money | Access to money depends on investment |
Reasons to invest money
- Financial independence
- Create/Build wealth
- Tackle inflation
- Tax-saving
- High returns
Some investments are fixed while some are market linked, some give high returns with high risk while some give low returns with low risk. Investment is required not just for future security but to beat inflation. Start early and get early financial independence.
Dr. Snehal Kamalapur
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Nice article 👍🙂
ReplyDeleteGood, informative
ReplyDeleteUseful information mam. ।।
ReplyDeleteyes..investments at younger age gives you more returns..
ReplyDelete