Hello friends welcome to the website Dikri Nalendra07 how are you today hopefully healthy always yes, today I will discuss about Invest or save? is it better to save or invest?
Friends, you must have been taught when you were little, even now you have been taught to save because there is a saying that saving is rich, but that's not quite right, friends, because when we save there must be an increase in prices or it is called inflation, an example of inflation, in the past the price of instant noodles was below 1000 while now the average is 2500, the increase does not bear more than 100%, another example is the price of gold in the past, the price of gold was below 200 thousand per gram while now it is fantastic, namely 800 thousand and above, in the future inflation will continue to occur so if friends buy noodles at a price when with a nominal value of 10 thousand you can get 4 possibilities in the future will get 2 even 1 really a very significant increase isn't it?.
Can we align finances with inflation? Of course you can, by investing, do you know what investment is? and what is the difference with saving, if not or want to understand it better, friends, see this article and I will discuss it below.
Definition of investment
Investment is an investment activity either with money or other assets, investment is not only with money but can invest in knowledge such as taking courses that are mastered in the hope that it will be useful in the future.
Investing today is not as difficult as it used to be because with 100 thousand and even below you can invest so it is suitable for us students such as investing in digital gold, the money market or buying a domain to create a blog and it can generate high returns and profits like getting money from adsense, advertise other people's products or affiliate links.
Definition of saving
Saving is a useful activity by setting aside money for future needs, saving a lot from an early age such as training to manage finances and that is useful for the future, buying things according to their wishes or making capital in their future.
It has been mentioned previously that investment can increase returns or income that is more than the capital we had before, not only that investment has several benefits such as:
- Able to avoid inflation
- Achieving financial freedom
- Preparing for retirement
- Preparing wedding funds
- And prepare for the cost of children's education
- Increase income
Disadvantages of Investment
Investment not only has advantages but also disadvantages such as:
- For some investment products, it can be detrimental, such as stock investments or company investments
- It takes a long time to get a high return
- For some investments it's a bit difficult to cash out
Advantages of Saving
Saving certainly has advantages such as:
- Saving is very flexible because friends can manage it
- Very low risk level
- Can refrain from spending unnecessary money
- Have a reserve fund
- Very suitable for short term
Weaknesses of Saving
Not only advantages, saving has disadvantages such as:
- Always eroded by inflation so that the nominal we save will be lower
- Not suitable for long term
- Will be subject to administrative deductions by the bank concerned if friends save at the bank
Ok friends, thank you for reading this article, hopefully the article I made can be useful for friends