Investing becomes one of the most powerful words in this era, with economic growths during decades, there are many new faces investors who take this opportunities. But the fact is, every investment comes with risk.

First, what does it mean by investment? ” investment is the action when we put a certain amount of money ( Capital or Fund) with the expectation of obtaining an additional income or profit both in short term and long term”

The difference between Saving and Investing

There are some comparison for this 2 aspects, mostly they come with risk preference, here is why:

SAVING

When we mention “Saving”,
It is ususally refer to the best way to keep money since our parents and people around us will suggest this method to keep money safe with no risk or maximize the risk as much and possible.
Saving can be long term and short term target such as retirement saving plan or saving account which normally relate to little or no risk at all. The main purpose is to secure fund and preservation of money rather than make money grow.

Nonetheless, people will put their money in saving account for certain amount of interest from bank annually as bank will guaranteed interest rate and we feel safe with that

INVESTING

The difference of investing and saving is how much risk you can take. It is clarified by risk acceptance
The word investing always pair up together with investor or trader such as stock traders or real estate investors but investing can be any kind of investment which allow you to reach your financial goal.
Investing sounds more intimidating that it is. Yes, there’s always a potential risk for loss, but there’s an even bigger potential for serious gain if you have the right tools and right decision.

Warren Buffett defines investing as “… the process of laying out money now to receive more money in the future.” The goal of investing is to diversify the risk of investment methods in the hopes of growing your money over time.
The earlier you start, the greater profit you can make.