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Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden - Investment - Nairaland

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Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by BiafranBushBoy: 11:16am On Mar 05, 2018
Savings vs. Investments: Which should you, go for?

The longtime debate stands between Savings and Investment, which is better! Before you come into the post and scream “Investments”, I sincerely want you to read and digest the post.


Savings, as written in this post doesn’t mean the regular bank savings account. Please refer to the previous post for more details.



You must have come across this quote that compares savings and investment before “Investments make you rich, while savings make you poor”. This is absolutely false and would never be true. Financial illiteracy is the reason why many people keep losing money in the financial market and blame the devil for such action.

This post would help you decide whether you are ripe to create investments, or you should build up your portfolio with a good discipline savings culture.

Difference between Savings and Investment

Is there any difference between these Savings and investment? The answer is yes, and I will explain below.

“Saving is an Investment, but an investment isn’t saving.”

The above statement has been proven correct by financial experts, and I will show you an example below.

According to TheBalance, “Savings helps you make money while investing MIGHT help you build wealth”

Putting the above statement in another way, when you invest, you are more likely to lose your money and become poor than when you save.



The basic difference between Savings and Investment is just the Profit margin and risk factor.

Savings = Zero Risk investments + Low-profit margin.

Investing = High Risk + High-Profit margin.

This simply means that Savings can be called investments, but investments cannot be called savings.

A friend of mine had 600k Naira in his account and invested about 400k in setting up a poultry farm. After 4 months, all the bird suffered from a particular disease and died. He was left with just 200k to plan his life again.

A woman has 1 million Naira in her account and invested about 900k in a particular share she was advised to buy. The Share lost its value and she came back home empty-handed.

“What a way to spend her hard earned money”

There are also success stories of people who invested and got out successfully, but in investing, it is nothing but pure luck and a little bit of financial literacy.

A particular popular firm in Lagos known for it rich financial background has been declared bankrupted and taken over by the appropriate body. Shareholders and stakeholders have gotten their fingers burnt, which means Goodbye.

Things to do before you decide to Invest as a Starter

1. Have robust savings account far from your reach

A lot of people contacted me after my last post on how they could invest. After I talked to them about the need to save money before investing, I became a prophet of doom to them. They forget that the fastest way to lose money or gain money is to invest. This is a big difference between Savings and Investment

As a low salary earner, a working class person with a family with no major savings, young people building their lives, saving for a while will give you the leverage to invest.

"Investment portfolios will never stop to cease, but saving requires discipline and focus."



It is impossible to find an investment with so much upside potential without excessive risks to it. Imagine looking for an investment portfolio with an interest margin of 40%, yet you aren’t willing to lose money. It doesn’t work that way.

If you don’t have reserve savings account with more than 500k Naira, then you shouldn’t think of investing in any major portfolio.

You can’t have an account balance of 100k (Home and abroad), and you are thinking to start a business with all of it. Have you calculated your risk factor? Maybe you should just employ me.

Consider your Debts, Cash Flow, and Liabilities.

A married man with 2 kids already has lots of liabilities to consider. The wife, home, kids, school fees, car, and etc are enough debts to consider already.





There are several savings investments to invest in, and I will be willing to share in my next post. You can just subscribe and I will inform you when it is out. The basic truth is that you should consider Savings and Investment.

The key to saving like I discussed in my last post is avoiding the banks (Where you won’t touch your money)

Save for a while before you invest

According to Warren Buffet (the chief saver), he said “Investments might make you rich, but savings will never make you poor).

One advice I give my clients is that before they decide to invest, they must show me their savings balance.

While you decide to save, you should consider a long-term plan that would enable you to accumulate your money and have a wonderful reserve account.



Avoid High interest and High-Risk Portfolios as a Learner

The brokers won’t tell you this (sorry I am bursting their bubble). Stockbrokers and other financial brokers survive through the money you invest.

As a learner, avoid investment portfolios that promise unrealistic ROIs. They will sucker you in and unload dogshit on you.

I have lost thousands of Naira on several high-risk investments, and I have made millions from high-risk investments too. So I know exactly what it feels like.

If you have worked as a working class person with an average salary of 45k for above 3 years without a savings balance of 800k Naira. What you need is financial discipline and not investments for now.

Accumulate money with savings, and build wealth with investments. That is the relationship between savings and investment.

Recommended Book to read: “Richest Man in Babylon” by Napoleon Hill

Just remember that when it comes to taking tough financial decisions, you might grow cold feet. Spending money is actually sweet!

Just visit the blog by using the link, and subscribe for more exciting posts. Thanks to all those who bought me beer the last time, I hope to get more. Smiles… bye!

http://topwritersden.com/savings-and-investment-difference-and-guide/

50 Likes 6 Shares

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by BiafranBushBoy: 11:26am On Mar 05, 2018
This year won't pass us by. I have written about the best investment packages you can consider in Nigeria. Good day and God bless

lalasticlala, dominique.
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Manus17(m): 3:12pm On Mar 05, 2018
which books can I read concerning the financial discipline?
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Ay04z(m): 4:04pm On Mar 05, 2018
God increase ur iq My man

1 Like

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by BiafranBushBoy: 4:09pm On Mar 05, 2018
Manus17:
which books can I read concerning the financial discipline?

The richest man in Babylon

Think and grow rich.

Psychology of wealth.

The problem isn't reading the book, the problem is not implementing what the book says. Goodluck.

lalasticlala, survey this thread first na sad

8 Likes 1 Share

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Ay04z(m): 4:11pm On Mar 05, 2018
Ay04z:
God increase ur iq My man

2 Likes

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by BiafranBushBoy: 8:22pm On Mar 05, 2018
Ay04z:
God increase iq My man

Nawa ooo... I sincerely no understand this your prayer. sad cry

3 Likes

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Alabiantech: 8:41am On Mar 07, 2018
hmmm what a post. Thanks Op. where are the mods? lalasticlala come and see
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Debby05(f): 10:52am On Mar 07, 2018
BiafranBushBoy:
This year won't pass us by. I have written about the best investment packages you can consider in Nigeria. Good day and God bless

lalasticlala, dominique.
Thanks for the write up.....pls can we know about the packages you talking about
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by BiafranBushBoy: 11:42am On Mar 07, 2018
Debby05:

Thanks for the write up.....pls can we know about the packages you talking about

Oh sorry, I wrote it on the blog. I will drop you a link.
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Debby05(f): 12:16pm On Mar 07, 2018
BiafranBushBoy:

Oh sorry, I wrote it on the blog. I will drop you a link.
OK..... waiting on it�
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by BiafranBushBoy: 1:27pm On Mar 07, 2018
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by 400billionman: 10:17am On Mar 09, 2018
coolby
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Christane(m): 10:18am On Mar 09, 2018
let vote wch is betta click LIKE 4 saving
and SHARE 4 investment ..

11 Likes 7 Shares

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by addikt(m): 10:18am On Mar 09, 2018
Didn't read your long story but this is sure simple...

INVESTMENT IS BETTER ONLY WHEN YOU'RE SURE IF THE GAINS . IF NOT , THEN JUST SAFE AND MEET YOUR TARGET .

6 Likes 1 Share

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by KKKWHITE(m): 10:19am On Mar 09, 2018
you don't need someone to tell you that investment is better

1 Like

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by henrixx(m): 10:19am On Mar 09, 2018
both are good.
save for the rainy day
invest for a guaranteed tomorrow

do both at the right time. if you have money and no good investment to make save it. and if you have money and there's a good investment out there INVEST!

3 Likes

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by akeentech(m): 10:20am On Mar 09, 2018
henrixx:
both are good.
save for the rainy day
invest for a productive tomorrow
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by 400billionman: 10:20am On Mar 09, 2018
Go for savings. It will take you many years to understand what investment means. Investment is a long term and often fixed term form of savings for people with mature economic minds. So many adults never comprehend the principles of investment all their lives. To the learning mind investment doesn't make sense because it keeps your funds out of your immediate reach and deprives you of cash flow.

1 Like

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by marvin906(m): 10:21am On Mar 09, 2018
investments is better buh for investment security
i cant say much about that undecided undecided
that moment you see your stocks going down like the naira

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by anthonypeters(m): 10:22am On Mar 09, 2018
Save to Invest; Never Save to Save.

Saved money does not increase in value but the right and well managed investment increases in value.

4 Likes

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Rexnegro(m): 10:22am On Mar 09, 2018
Saving is just keeping Ur money without working to increase, why investment is saving the money as it works for u to make profits increasingly . So for me go for investment as long the investment is safe to go into. Good luck with what decision u make.

5 Likes

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by AnodaIT(m): 10:25am On Mar 09, 2018
The only savings you should do is Fix deposit or you convert your Naira to dollars and save in Dom account or Perfectmoney or Payoneer

Outside that, go for investment

1 Like

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by Analysiscorner: 10:25am On Mar 09, 2018
Thank you so much!
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by dominique(f): 10:26am On Mar 09, 2018
Both. I'm SAVING towards INVESTING in a business
Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by MorataFC: 10:28am On Mar 09, 2018
When u save ur money in a bank, the banks now use ur money to invest and give u shikini interest.

There is no way saving can be better than investment.


Let's say I'm retired teacher, soldier or policeman and I was given gratuity of #7m then I listen to OP's advice/suggestions by saving the money in a bank, in the next five years can you tell me what would have happened to the money?

2 Likes

Re: Savings Vs. Investments: Which Is Better? Any Difference? - Topwritersden by bettercreature(m): 10:31am On Mar 09, 2018
dominique:
Both. I'm SAVING towards INVESTING in a business
Go and marry a rich man grin grin grin

2 Likes

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