Journey Towards Financial Independence : Types of Investment

 

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