• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

InvestSmall

  • Personal Finance
  • Corporate Finance
  • Capital Market
  • Reviews
  • Find an Investment

Similarities Between Savings and Investment

March 17, 2020 by Finance

similarities-between-savings-and-investment

There are differences between savings and investments, as well as similarities. Although one would expect that the discrepancies between both of them outweigh their relationships. A shared trait between saving and investing is the importance they play in our lives. We shall spend the subsequent paragraphs examining some of the inter-relatedness between savings and investments.

Future Benefits

A common feature both savings and investment share is in preparing us for the future. When we analyse the rationale behind embarking on these financial strides, we discover we deliberately put money away for the future. This is probably borne out in a bid to become financially independent or literate. It, however, does not change the notion that we are conscious of the rewards they distinctly bear.

Means of Generating Income

This is arguably one of the prime reasons for either investing or saving. As millennials or Gen Zers, we are finicky about our spending parity. When we set out to either save or invest, we invariably take a risk. However, we do so with the intention that it attracts even greater revenue. Perhaps, taking the risk, after all, is worth it. 

Investing is One Kind of Saving

The journey towards long-term investment begins with first mastering the basics of saving. Experts argue that saving sets the blueprint or pedestal for investment. It goes to say that “an expert at a skill was once a beginner”. It may be possible to prove this theory wrong, from an objective lens anyway, saving does leave a mark on investment.

Financial Planning

Planning is an integral aspect of any financial encounter. Failing to plan ideally translates to planning to fail. The processes associated with either saving or investing involve a background analysis of what you want. What do you seek to achieve after embarking on either of them? Are you pursuing short term or long term goals? The resolution from our analysis becomes the output of what we venture into.

Read this -  Nigerian Interbank Settlement System (NIBSS) - What you need to know

Income and Expenditure

Here lies another relationship between saving and investment. The income meant for both savings and investment are outside the scope of expenditure. For salary earners who allocate a portion of their income to savings or investments, they do so outside the overall budget for expenditure.

Conclusion

We have examined both the differences and similarities between savings and investment. Although they are used interchangeably, now you know better when to employ the terms. The relationship between saving and investment provides a backdrop into the expectations for each stride. Again, review your financial goals and ascertain what measure fits your idiosyncrasy.

Related Post: List of Top 10 Investment Companies in Nigeria

Find An Investment
Post Views: 1,022

Related Posts:

  • The Differences Between Savings and Investment
  • What is the difference between savings and current account
  • Savings vs Investment: Which one is more important and Why?
  • Cowrywise vs Piggyvest: Which is Best for Your…
  • Savings Account - Everything you need to know
  • What are Savings?

Filed Under: Personal Finance

Primary Sidebar

Recent Posts

  • How to make money on YouTube in Nigeria
  • Local Purchase Order – meaning and what you should know
  • Binomo Investments – What you should know
  • Zero-based budgeting – What you should know
  • Lagos Building Investment Company – Everything you should now

Related Posts:

  • What is the difference between savings and current account
  • Savings vs Investment: Which one is more important and Why?
  • The Federal Ministry of Industry, Trade and…
  • Investment: Meaning, Types, and Characteristics
  • Bank of Industry - Overview and Functions
  • Grants and Loans explained - What you need to know

Footer

  • About Investsmall
  • Disclaimer
  • Terms Of Use
  • Contact us

Copyright © 2021 Invest Small. All Rights Reserved