The Ministry of Finance said that the main difference between saving and investing lies in the time period in which you hold your money. Through savings, money is saved under a special item for a specific purpose and for a period of several years, while investment requires larger amounts of money that are used to develop wealth over more years.
The ministry added, in an awareness bulletin: "Once you pay all your debts and allocate an emergency reserve, your financial situation will be in good condition, and then you can use the money that you got with your effort and fatigue, and invest it in achieving long-term goals, such as allocating an amount that you invest and the proceeds will be returned to you upon retirement. This may take some time and effort, years or perhaps decades. "
"Investing is usually risky, but it can bring you much higher growth than just saving, a wise investor distributes these risks across a variety of funds. Low-risk investment funds and those low-to-medium risk funds are one of the common ways to do this." A twenty-year-old student can save 100 dirhams of money every month, so his savings will be much more than if he started saving when he was thirty years old.
Whether your dream is to start your own business, own a home or pay off your debts, we encourage you to develop your own savings strategies that are in harmony with your circumstances and income, and implement them sooner rather than later.
She concluded: If you feel frustrated that there is no extra money to be saved, take four steps:
- Start selling things that you don't use or need, because there are many ways you can sell your things.
Control your money and manage your budget ... Focus on what you need, not what you love and desire when shopping.
Make a monthly "due" payment for your emergency fund, even if it is a small amount because it will accumulate over time.
Control your credit card; clear your balance in full each month or leave your card at home when you go out.