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Invest or save money?


Predrag V

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Don't get confused. I'll help :classic_cool: 

The key difference

Invest

- You can't instantly use this money. 

- There is a Risk of your principal capital decreasing. 

- It requires your time to monitor and analyze the 'reasons' you invested in an instrument for, at least twice a month, and whenever there is a major event that affects financial markets.

Save

- You can instantly use this money. 

- No risk.

- Saved money will fail to defeat the inflation.

 

When to do what

Invest

When you have enough savings for emergencies and can keep the remaining money invested for at least a year.

When you have an investment opportunity, such as acquiring an instrument/stock at a cheaper value compared to its valuation (there are many more strategies). Or there is a recession, and markets are highly oversold. 

Save

- When the above two points in "Investing" are not fulfilled. 

Edited by Rishabh Tyagi
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Hi Predrag, thank you for asking this question. 

In general, investing is always a preferred option. Additionally, investing in the stock market is the most likely choice for many investors as it offers a high growth rate, although the risk associated with investing in stocks is higher as well. In essence, the higher the return, the higher the risk as well.

Some people also prefer to invest in more secure assets, such as government bonds. They are far more secure than stocks since the governments are their guarantees. However, they also offer much lower return rates.

“If you had to choose between buying long-term bonds or equities, I would choose equities in a minute. If I were going to own a 30-year government bond or own equities for 30 years, I think equities will considerably outperform that 30-year bond,” the legendary stock market investor Warren Buffet once said.

Before you invest, we advise you to first analyze the market that you are looking to invest the funds in. The basis analysis should be conducted both from the technical and fundamental aspects. 

Fundamental analysis is looking to measure the natural value of an asset. For instance, fundamental analysts tend to look at Apple’s revenue, cash flow, dividends, management, earnings, growth etc. This way they would calculate the value of each Apple share.

Conversely, technical analysts would simply look at the market price of Apple shares to tell you the price. They believe that all financial and fundamental factors are priced in.

Although completely different, these two methods can work together in an efficient manner. First, you should analyze the stock from a fundamental viewpoint. This should tell you whether this stock has a good outlook. If the answer is yes, then the technical analysis should help you WHERE to buy the stock i.e. the price. This way, you will get the price levels at which buying the stock X is attractive.


 

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Many banks offer deposits that can be used as a personal piggy bank and at the same time you can earn a small percentage of the amount that you have invested in this deposit. It is profitable and the risk is practically non-existent in this. However, with investments, you can earn much faster and then almost immediately withdraw your money

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On 8/3/2022 at 7:10 AM, NaryaJonson said:

Many banks offer deposits that can be used as a personal piggy bank and at the same time you can earn a small percentage of the amount that you have invested in this deposit. It is profitable and the risk is practically non-existent in this. However, with investments, you can earn much faster and then almost immediately withdraw your money

I work at The Finity Group and I sometimese see that people are afraid of losing money because they don't know how to invest. They are doing the right thing not to start investing without proper knowledge. However, if you learn how to invest, it is best to invest your money. On the other hand, if you need to save for something in the long term, it is best to use a bank deposit.

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Investment is one of the best ways to achieve financial freedom. For a beginner there are so many challenges you face. It’s hard to know how to get started. Trading at primecryptomarket has really been a life changer for me. I almost gave up on crypto currency at some point not until I got a good trading company,  they gave me all the information required to succeed in trading. I made more profit than I could ever imagine. I’m not here to converse much but to share my testimony, I invested $5000.00 and got back $50,500.00 within 5 days of investment. Their strategies and signals are the best and I have gained more knowledge. If you are new to cryptocurrency. You can visit their website primecryptomarket.c-o-m

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