Saving And Investment Investing

There is a difference between saving and investment. The stash, the bank, the wave of the office or the money under the mattress are typical examples of savings. Today, little different these traditional methods of saving with a bank checking account. Saving has a purpose: to sacrifice current consumption for future consumption enjoy. Inflation, constant headache global consumption decreases the future with respect to the current dramatically. As a saving today (and forever), must be followed by a performance.

Savings that offers performance can be considered as an investment. Investment involves risk. Savings really well. We never know what can happen in our country or in our own home that can have repercussions that undermine the value of our money. So irresponsibly but on fundamentals, it is natural that a person decides to consume today and say no to investment. Obviously, the above is not the right way. Risk surrounds us.

Can This being our last day of life no? (Knock on wood). But if we get to see the day tomorrow, I hope I have increased my money, at least a little. There is an implicit rule for investment and may seem obvious, not all investors take it into account: investment exists because it is the means to accomplish an objective. Why is it so important to have an objective to invest, if I understood that I invest anyway? The answer is strategy. Your goal will tell us what term, instruments, institutions, how much risk I can take and what kind of return I need to achieve my goal. I want to go on holiday next year or want to become a heritage for my children?, I want to gather for a dignified retirement or want to enjoy the status it gives me the roller coaster ride the stock market? The strategy is built based on the amount, term, avercion to RISKS and objective, which in turn, the latter will set the strategy. Summarizing Previous: It’s important to invest (or save with performance) We must set an objective reason to exist on our investment, we must plan a strategy that is congruent with our goal. And one last essential, be disciplined, follow your strategy and never lose sight of your goal.