Saving is when you have 100 bucks and you keep aside 10 bucks. Be it in a piggy bank or somewhere in your locker. 10 bucks will remain 10 bucks it will not grow.

Whereas investment is when you have 100 bucks and you put 10 bucks from it in a bank FD, mutual funds, buy shares etc. The 10 bucks will grow from a period of time.

Today we have more smart investors than people who save money in piggy bank. But, it all starts with saving penny by penny in a piggy bank and this habit of saving money in early age leads to investing your saved money in different instruments of investment and let the money grow on its own pace.

Buying Gifts from saved money

Children who learn to save money in early age, know the value of money. They save their pocket money to buy certain highly priced products. It puts more efforts and value to that product which is bought by saving money. I have seen an advertisement on T.V. which shows a child saves money to buy a gift for his mother, on her birthday. How much feelings and values are connected with the gift.

You can buy anything on credit

For creating demand companies offer their products on credit. You can buy a high end mobile, refrigerator, car, bike on EMIs today. If this facility would have not provided what you will have done? Either you won’t have buy it or you would have buy after saving money for it. EMIs have made us stop saving money. How a person can save money if he has to pay EMIs?

Attractive offers and Discount

The discounts and offers attracts everyone. The savings can be done to purchase at the time of festival discounts and offers. Invested money on the other hand beat inflation and fulfill long-term goals.

Good credit score leads to Good amount of loans

Do your mobile rings and person offers you loans of different kind without any documentation? If yes, then your credit score might be very good. People who often pay back their loans on time, pay credit card bills on time fetch good credit score which benefits them in the form of further loan offers by the financial institutions. They create goodwill in the form of good credit score and attain trust of so many financial institutes that banks call them and offer loans.

Which is your best investment tool?

You would have come across many financial advisors who misguide you and sell inappropriate insurance policy, mutual fund, health insurance etc. They evaluate your long term need and goals, your short term requirements of money after that they suggest you where to invest your money. It’s good to know how much money is required to be invested today to fetch desired returns in future. But don’t trust these financial advisors blindly. You have different apps and websites also which will do the same for you. Policy Bazar is one of them, which will guide you and you can compare which policy is giving what benefits and which policy is cheaper.

Saving money is important but investing your money is more important as it makes your money grow. Happy saving, Happy investing.

Ramneet Kaur