Steem Nigeria Contest | INVESTMENTS AND SAVINGS

I am glad to participate in this awesome contest organized by @samsuccess.

Investing is procuring assets such as stocks, bonds, mutual funds, or real estate with the assumption that your investment will make money for you. Although in general language investment may imply many types of economic activity, economists usually use the term to describe the procurement of durable goods by households, businesses, and governments.

Saving is setting aside money you do not spend now for future purposes. Saving also means the money that a person has left over after removing out their own spending from their disposable for a particular period. To some people saving means different things to different individuals. To some people, it means putting money in the bank. To some is means buying bonds or contributing to a pension plan. But to economists, saving means just one thing, spending less in the present to spend more in the future. Saving could be in form of physical cash or cash equivalents like your bank deposit which have no loss or risk.

Differents between Investment and Saving

Investments are set up for wealth building since it involves putting your money into bonds, shares funds, and property with the intention that your money will increase. Though investment involve greater risk, but also have the potential for higher profit than a normal saving account. It will good to have a well-diversified portfolio that helps manage your risk and as well as the potential to give returns.

While saving on the other hand is typically no risk. You can earn interest on the money you save; your initial capital is secured and it is more easily accessible to get it when you need it.

Personal scenarios

I would prefer investing to saving. We the current situation in the world today particularly in Nigeria. The hyperinflation in the country today is alarming. I was told by my parents and other elderly people that could bought plots of land and car with #500. Me being a young boy would be wondering how was that possible. Then I realize that things are getting expensive every day due to inflation. Inflation is making the value of our currency depreciate. I won't be surprised in the year 2050 if #1,000 could only afford one sachet of water (pure water) and #1,000,000 could only afford a bicycle with the way things are going now in Nigeria.

I was thinking of buying a #35,000 phone only to find out some weeks later that the phone price has increased to #50,000 there about and who knows maybe next year in would increase to #70,000. Currently, I only have little money in my saving account, most of my money are in my cryptocurrency wallet.

Thank you for reading