investment or savings

Muhammad Salem Al Ali

February 02, 2023

Both savings and investment are two interrelated strategies for achieving financial security, but the essential difference between them is whether you are saving money for future use, or you want to invest it in other assets for income and profits, and the difficulty you face here remains knowing when you should Saving, and when should you invest?

The answer to this question bears many approaches and dealing methodologies. When you have a stable income, but no money at your fingertips, you should save, because it will protect you from unexpected financial emergencies, such as losing a job, for example, or the appearance of sudden expenses, and it will also benefit you greatly. When achieving short-term financial goals, such as buying a house or a car or paying university fees, in this case it is a much better strategy for you than investing. Money in hand, you will be more able to bear and face risks, and you will not have to sell your investments at a loss at the first emergency, you have a solid wall to lean on, and your flexibility is also at its highest degree, and your goals are all achievable through investment returns, for example, if If you invest in stocks that rise and fall in value from hour to hour, it is easier for you to bear thoseRegular fluctuations if you have another source of cash available to cover financial emergencies.

Some conservatives may say here that saving has its advantages over investment, because the money in it will not be affected by the passage of time, but rather will increase with more savings, and it also enables you to reach your goal on time, as long as you save the appropriate amount every month, but in reality it is Highly vulnerable to inflation and price increases, meaning that your savings may decrease in real value from year to year, and you will have to increase the money you allocate each month if conditions change and the cost of your goal increases.

As for investment, and if you enter into his world in a sound and thoughtful way, then he alone is able to give you the ability to grow your money faster than you can imagine, and he will win you every goal and desire, especially if you have investment experience and patience, then your returns will double, and your profits will increase, but with All of this, investment also has its risks, especially when there are waves of changing conditions that rock it and undermine its foundations, or perhaps when you yourself are new and inexperienced.

Perhaps the safest path in both cases is a mixture of saving and investment, that is, you must have two completely independent funds. When you start saving in pursuit of a short-term goal, you can at the same time make an investment in pursuit of a long-term goal, and the beauty here is your ability High on adjusting the path, that is, to slowly turn from one end to the other, which will help you avoid many consequences and repercussions. If the next one is promising, you tend to invest, and if it is blurry, you return to saving.

The first and last advice remains to seek the opinions of people of wisdom and experience in this field, that is, if you are not sure of what you should do, you should resort to a financial advisor who will help you make the decision, and you must always remember that the future is like a sea full of fluctuations, and the longer you have a breath Whenever you are ready for challenges.

Founder of Suhail Smart Solutions

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