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What do you think is the difference between saving and investing??
by perl4ever 7y ago
What do you think is the difference between saving and investing??
- nightski 7y agoSaving is preservation of capital whereas investing is growing capital. At least that is my take.
- jfk13 7y agoSaving is normally expected to be minimal-risk preservation of capital, whereas investing risks capital loss (alongside hoping for capital gain).
- perl4ever 7y agoYeah, a person could distinguish them this way, but you're using the passive voice. Who habitually uses the words in this manner consistently, in what contexts?
- perl4ever 7y agoOk, but parent is lamenting that "saving" pays less than "investing". You're saying that's implied by the (or your) definition so it seems like it would go without saying.
- wffurr 7y agoIt's not that saving pays less than investing; it's that it's paying almost nothing right now. Savings account interest rates are terrible, which is very frustrating if you want to have some cash reserves. I'm not going to put my 6 month emergency fund or the downpayment for my future house into stocks and ETFs; they're too risky. It hurts to keep it in a savings account paying less than 1% though, which is the alternative.
- tree3 7y ago> "saving" pays less than "investing" It does, except for when cash performs better than equities (like during a bear market).
- battery_cowboy 7y agoSaving is for the proles, investing is for the oligarchs.
- all_usernames 7y agoYour savings account will not drop 25% in one week unless you withdraw from it.
- perl4ever 7y agoA savings account is a form of savings, but this is the first I've heard of people considering it the only form of savings.