Planning for your future is one of the most important things you should do, and if you did not do it until now, it is time to start planning for it.
Difference between saving and investing
Saving money and investing money are two completely different things, like oil and water. Sure, they are both liquids, but the uses and properties of both elements are different. The same is true to saving and investing.
The most common way to save money is to have a fixed deposit account with your bank. It differs from your savings account, as the latter charges fees over your transactions and it is meant for active use.
The prior is where the money will be saved in the bank, for them to use as investment capital. In return, you get an interest rate applied to the amount of money you have saved, where the returns is usually around 0.5% per month.
Other forms of saving money are, buying things using credit card in order to get a discount, taking advantage of promotions and even putting money under your mattress.
It is a grey area when it comes whether a fixed deposit account is a form of investment, as you are earning money from it. However, it is usually not included, as it is not an active way to earn money. Due to this factor, there are other forms of investment that you should consider. For examples, Treasury Bills, Notes or Bonds, stock trading and even starting your own business. Investments have a variety of risk and profit levels. As the risk and profit are directly proportionate, the higher the risk, the greater the returns and vice versa.
With stock trading, for instance, it is possible to be a millionaire in a matter of weeks, depending on your business insights and ample research as well as a little bit of luck. Nonetheless, you can also lose it all in the following week, due to market fluctuations and external factors, like economic crisis and corruption scandals.
On the other hand, the State Treasury will not make you a millionaire overnight but will get you a solid and predictable profit along the way. The difference between bills, notes, and bonds are beyond the scope of this article and will not be discussed here. For further details, you should visit the website of the Department of the Treasury base in your country, for they may handle things differently.
If you are interested in business funding as an option to pursue a new stream of income, Vantisco Global offers one-stop funding solutions that work for your needs.
To find out more about these funding opportunities that Vantisco Global has to offer, check out the links below: