Post
Topic
Board Economics
Re: Is it better to save money or invest it?
by
Shibashi Dogemoto
on 22/06/2016, 13:23:47 UTC
Investment means giving the money to someone who uses it for their business and pays you back a dividend (and you normally get some kind of share that can be sold later). Think stocks.

"Save in bank" is actually a kind of investment. You give money to the bank, they use it for their business and give you a small interest (if at all) as dividend, and you can withdraw your money. With current interest rates, this is pretty boring, the only advantage compared to keeping money in a safe at home is that it's easier to do most types of payment, and that you don't need your own safe...

Buying precious metals is not an investment because those metals won't work with the money you paid for them. It's mostly speculation (you hope that you can sell it for a higher price) and safekeeping (real value of money can fall due to inflation, while precious metals will mostly retain their "real" value). But you need to consider storage fees.

To decide which is better you need to know what you consider "good".
Do you want to maximize your ROI? Do you want to store your wealth safely? Do you want to enable entrepreneurs to build their businesses?

Onkel Paul
It is not that you are not true but there are allot of difference between people who can invest and people who can better save money it also depends about how much money someone has.

Investment requires capital and capital requires savings, if you have not saved money regularly then it will be difficult to make any investment, saving is primary and investment is secondary.

yeah but you don't need to save up all your life to be able to make an investment.
you can make an investment even with smaller amounts, you can always find something (not necessarily bitcoin related) to invest in even with small amounts of money that you have. and with small amounts you can even find much better returns than bigger amount of money.

Small investment will give you smaller profits and vice versa, but the fact is profit is profit either smaller or higher its always better then loosing money.