Contest: Savings and Investment by @idken
Savings can be seen as a means of reservation to sort out future occurrences.
Taking the Thrift Savings platform as an example.
This platform is locally operated to help regulate spending among members, and it allows members to come together, contribute resources which will later be given to them in bulk according to their assigned month.
This is mostly done by small scale traders, and it's for a short term period.
The money collected by members can be used for personal use or for investment.
One of the most discouraging part of savings is that you won't generate additional money from it, and there is possibility of value depreciation of the money saved, except you are saving it consistently.
Over the years, people have been developing different methods of savings.
From the use of saving box to depositing in the bank.
Source: Facebook
Source Facebook
And some banks have come up with the idea of adding money to customers who have saved money for years, but can't be compare to what you will get from investment.
In the other hand, investment is the process of laying out money or capital in an Enterprise or let's say business with the expectation of making profit.
Investment requires a lot of risk because there is slim or zero possibility of making profit.
People invest without knowing if the outcome will be favourable or not. So it is advisable to carefully make an assessment before you invest.
Investment can be done in so many ways, ranging from investing in the business of your choice, parents investing in their kids future by sending them to school or to learn a trade, investment can also be done by acquiring skills etc.
But as far as investment is concern, you can either gain or you lose. You can't escape from both.
Source: Facebook
Source: Facebook
Investment differs from savings in so many ways.
Investment requires a lot of risk because no matter how sure you are about the investment, you can never predict the outcome. But in savings, you are sure of getting your money without a scratch.
But if you are lucky to get a positive outcome in investment, the profit you will generate is far more better than savings.
Investment helps you to be creative and innovative as you are looking for a way to make profit, which is not applicable in savings.
The major advantage of savings over investment is that you are going to get your money back, but with investment, it's not certain.
I had an experience during my school days which completely changed my perception towards investment.
So I'm going to share this personal savings and investment story.
During my days in school i had a friend who was ever ready to invest his last penny on anything he feels will help him make profit.
So each time we get our feeding money,we do the normal spending and we will still have some leftover.
And there was this business in school that was really moving that year.
That was the popcorn business within the school environment, especially during school hours.
My friend invested in the business while i was busy saving.
As it is now, the young man has been able to rent a shop after our graduation, and has now added POS business to it and other snacks.
Source: Facebook
Source: Facebook
While i have been roaming around looking for job, my friend is making money, and the funniest part is that i have exhausted all my savings on feeding.
And i regret making such a costly mistake, because i could remember how he tried to make me join the business but i refused.
Looking at how the world is today, looking at how costly foodstuffs, building materials, other goods and even services are now. It is advisable to invest.
At some point you can start saving, but begin with investment.
I @idken believe so much in investment now, but you must be careful of what you invest in.