Is investing the same as saving?

<>With some frequency when talking about the world of money, what is investing and what is saving is confused. It may even have happened to you on more than one occasion. Even though they are terms that have a certain link between them, its meaning is not the same. You will want to keep this in mind so that you can better plan your savings and know which products you are targeting. Mainly to avoid any kind of confusion.

The main target que tienes cuando you invest your money es incrementar tu herencia. Cuanto más be, mejor será para sus intereses personales. En la medida en que una inversión puede conseguir una rentabilidad de las operaciones superior al 10% en algunos casos. Inclusive bajo márgenes más rentables, dependiendo de los resultados que obtengas en los productos donde los inviertes.

It is not a habit to save regularly, but to generate a return to boost your quality of life. Since usually your capital gains are not used to create a savings fund. Neither in the young nor in the old. In several cases they are used to pay for a large trip, have more liquidity in the checking account or face the payment of a small personal whim.

Investment products

Once you have identified what it means to invest, you will have no choice but to know through which products you can channel your savings. As you can see, they are many and diverse in nature. Not just equities as you can believe their original approaches. But in addition to the fixed and even other investment alternatives. It is not invested only through a single financial instrument.

When talking about investment, you always have to refer to financial assets whose prices are quoted in the markets. From this dynamic, and as a result of the Law of supply and demandwill always vary. Every day and in any of the circumstances. At no time is the price agreed, as is the case with savings models. Now you just have to know through which sources you can get it.

The model par excellence for this class of operations is equities. And among them, the sale of shares on the stock market. It is a model with which you are surely used to operating. It represents a possibility of generating profit for your monetary operations. But with the present risk that you can also lose, and even a lot of money if things don't go as well as you had planned from the beginning. It is characterized because you have ways of investing. Indices, sectors or values of the stock exchanges. Through a mechanism known to practically all users.

The investment can also channel it through other products much more aggressive finances. Where your profits can be significantly higher, but also the losses. This unique game is the incentive for many of the small and medium investors. Where many times sometimes you win and other times you lose. It consists of admitting the supply of the legislation and the demand in the securities markets.

The investment can also be made in fixed income through the purchase of bonds, public debt and other products with similar characteristics. Not surprisingly, these financial assets are also listed on financial markets, like stocks. It is true that they offer you greater security in vacant positions. But in exchange for lowering yields significantly. Whatever the case, this part of the investment has a certain link with what is saved.

Through investment funds

Investing in fixed income has a very effective instrument so that you can participate in your financial assets. They are mutual funds based on fixed income. They do not guarantee you any fixed return., and you can even lose money with them. Fundamentally if the scenarios where they move are not the most favorable for their interests. But whatever the case, they also depend on being listed on the financial markets.

There is a very peculiar characteristic in these products that makes them opt for investment. It is none other than the opportunity that you have to diversify it with other financial assets. In the way that seems appropriate since you have at your disposal investment funds for all tastes and for any investor profile: aggressive, moderate, defensive or intermediate. You will also not find limitations to this effect.

Debido a que, en efecto, el objetivo principal de los fondos es la inversión, no el ahorro. No en vano, intenta mejorar el saldo de su cuenta corriente mediante estas operaciones. Por otra parte, tienes la gran utilidad de que tienes un amplio abanico de propuestas. De todo tipo y para cualquier momento de la economía internacional. Como resultado de esta strategy, podrá alcanzar una rentabilidad media cada año de between 5% and 10%.

What is saving?

This procedure is clearly different. It consists of creating a savings exchange in the medium and long term. Low returns much more modest than it will be linked to the price of money. And that will affect that your purchasing power does not prosper as you wanted. It is formalized through savings plans, savings accounts and term deposits, mainly.

A very notable difference in terms of investment, is that in this case you will always have a guarantee minimum profitability, no matter how small. The capital saved in your account will increase, very slowly. Not surprisingly, it consists of an operation that young and old customers are used to through programs to promote savings among users. It is one of the models preferred by the most conservative users, who prefer security to other economic values.

El único propósito del ahorro es proporcionarle capital para el futuro. Uno de los ejemplos más claros son los planes de pensiones. Sirven para que las persons mayores puedan disfrutar de un salary supplement to their public pensions. Through money saved over many years and before retirement occurs. In this unique initiative you will see more clearly the difference between what is investment and saving.

Savings models

They are also numerous, but not as numerous as those intended for investment. One of the most traditional are term deposits. You get a return agreed between both parties that you will receive on a regular basis, every year or when it expires. However, and due to cheaper price of money according to the monetary authorities of the European Union, its performance is minimal. In all cases, below the important barrier of 0.50%.

Another of the products that serve to promote savings are payment accounts. But they have the same problem as in the previous case. Their performance is clearly unsatisfactory to your personal interests. Moving below similar or even lower margins. The same can be said of bank promissory notes, another of the savings models.

Another strategy that you will have on hand is to sign a savings plan that is marketed by most financial organizations. It is a very traditional way of making a medium term savings bag. Because with it, satisfy some of your most immediate desires. These could include buying a car or motorcycle, taking a trip with your friends, getting the latest model of smartphone, or any other wishes you may currently have.

Finally, with this review of the savings models offered by the markets, you cannot forget the plans that the main insurers have designed. They incentivize savings for customers with stronger margins. In certain proposals they can rise above the 3%. Aimed at attracting money from new customers through new marketing formulas. Becoming one of the most aggressive strategies at the moment present in the savings sector in Spain.

After analyzing the differences between saving and investing, you will be in a position to channel your relationships with the world of money much better. Knowing at all times the type of product to which you must subscribe. Proposals, whatever the case, you will not miss them.