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Saving, process of setting aside a portion of current income for future use, or the flow of resources accumulated in this way over a given period of time. Saving may take the form of increases in bank deposits, purchases of securities, or increased cash holdings. The extent to which individuals save is affected by their preferences for future over present consumption, their expectations of future income, and to some extent by the rate of interest.
Investing is the act of allocating resources, usually money, with the expectation of generating an income or profit. You can invest in endeavors, such as using money to start a business, or in assets, such as purchasing real estate in hopes of reselling it later at a higher price.
An investment is essentially an asset that is created with the intention of allowing money to grow. The wealth created can be used for a variety of objectives such as meeting shortages in income, saving up for retirement, or fulfilling certain specific obligations such as repayment of loans, payment of tuition fees, or purchase of other assets.
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The dilemma of either Saving or Investing bothers me whenever I have some extra cash in hand. I have invested a lot in some business that at the end of the day I lost my capital and there was zero profit. Ever since, I have to think twice before making the decision of investing, I rather opt for a savings plan. But on the other hand, in an economy that is as poor as that of Nigeria, saving is often a bad idea. The value of the Nigeria Naira keeps depreciating day in day out, which means if you save in an economy such as ours you'd loose the actual value of the money you saved. Poor!
But in a normal sense, saving isn't a bad idea. Saving is a way to ensure one has financial freedom, hence, having enough money to battle financial problems. It is important to save to be able to stand head to head with emergencies such as medical expenses, loss of job, etc. Also, it is also important to save towards the time when you can no longer be able to work - retirement. During retirement you'd have to fall back on your savings and investments to take care of your bills.
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The decision about how much money to save is a very difficult one,most especially for income earners that still struggle even with the amount they earn. Nevertheless, if you are determined to save some percentage of your income, no matter how small it is, you can. It's much easier when the act of saving becomes an habit. This could be achieved by living within your means.
All contents are originally written by me, @williams-owb
ABOUT THE AUTHOR
Williams Oluseyi is a Linguist by discipline from one Africa's Most Prestigious Citadel of Learning, Obafemi Awolowo University. He developed interest for blogging at very early stage which motivated him to study English Language in College. He is a prolific writer, an inquisitive and judicious reader, to say the least. To get his daily bread, he is currently working in a Logistics company in Nigeria.
