4. Investment demands technical knowledge, savings isn’t

It is always better to educate yourself while planning to invest in some products. You need to be aware of certain parameters and factors that will help you determine the strength of a company; and you need to know how to interpret the performance of a company share looking at the market signals and complex charts. You need to be careful when it comes to investment. However, the scenario for savings is different. To save money, you don’t require hardcore market knowledge yet, updating yourself with the current trends and options are always better.

5. Short term goals for savings and long term for investments

Savings is important to deal with your short term needs like emergencies or unexpected expenses and so, it is said saving is typically for smaller or shorter-term goals in the near future (usually three years or less). Investment, on the other hand, can help you attain long-term goals (at least four to five years away), for example saving for a child’s college education or marriage.Thus investments are designed in such a way that it will grow your money and build your wealth rapidly within a period of time.

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