To save or to invest; which you prefer?
By DoctorDidi
@DoctorDidi (7018)
India
April 21, 2012 9:21am CST
It is a common saying that it is smart to save and it is smarter to invest. It is so called as investment has more return if implemented in the right way. But that requires right information and right speculation. Moreover, a sound knowledge of the basics of finance and the proper technique of investment with courage to take risk are also essential for being successful as an investor. Thus investment is always risky but has the potential of generating more return in a short time whereas mere saving by fixed deposit or purchase of bonds etc is totally safe though one cannot expect too much from it. So it is now up to you to choose between the two. Which one would you prefer for yourself?
4 people like this
23 responses
@celticeagle (168126)
• Boise, Idaho
22 Apr 12
When a person is young they should stay with the investing program alot of companies offer. One where the company matches a certain amount of money that you invest in the program. I personally don't go in for any stocks or anything. I did buy bonds and had stock in the company I worked for. But that was all. I think being consistant in one program is good too.
2 people like this
@sarahruthbeth22 (43143)
• United States
21 Apr 12
I see investing as simple gambling and I live by the adage Meyer Lansky said. If you want to earn money from gambling, Own the house.So I rather save than invest.
@wiedenweg (1)
• Australia
21 Apr 12
Do not put all your eggs in one basket. Diversification is the key to success!
1 person likes this
@sarahruthbeth22 (43143)
• United States
21 Apr 12
My money remains in the bank thank you . If I want to lose it , I rather just walk down the street and toss it in the air.
@DoctorDidi (7018)
• India
2 Oct 12
But there are many people whose family tradition is to invest in the stock market. It is the business they are practising from generation to generation and they are doing it very successfully. So if you treat investment as an gambling, it is to people like us who do not know the ABC of investment and so always prefer to play safe by depositing money in banks in the form of FDR etc. But to those who play in the stock market, it is a science to them and they earn their livelihood from it. So attitude varies from person to person. So it is always wise to do what you can to do.
1 person likes this
@scheng1 (24649)
• Singapore
21 Apr 12
Hi Doctordidi, you may not realize that buying government bonds is also a form of investment.
The price of bonds changes everyday, even though the coupon rate does not change at all.
If you are buying when the stock market is really good, then you will pay a very low price for the government bonds.
In this case, you will earn more, even though coupon rate is the same.
For example, you buy at $97 instead of a hundred dollars, and the coupon rate is 5% of the face value.
When the bond reaches maturity, the government will pay you $100 instead of the price you paid from the secondary market.
That is both investment and saving at the same time.
@scheng1 (24649)
• Singapore
19 Jul 12
Hi Doctordidi, everything is about the stock market.
Even if you think that the saving account has nothing to do with stock market, you miss the fact that banks change the interest rate.
Over here, and in many developed countries, the fixed deposit saving interest rate is less than one percent.
The reason is due to the stock market and economic situation
When average dividend from stock market is less than 4%, the saving rate cannot be high.
@DoctorDidi (7018)
• India
19 Jul 12
I agree with you that buying government bonds is also a form of investment. But in case of Fixed Deposit Schemes, I think it is a type of saving. Isn't it? I am talking of such pure savings which has nothing to do with ups and downs in the stock market.
@DoctorDidi (7018)
• India
19 Oct 12
We, the Indians, are lucky in this respect that still now the rate is high, at least 8% annually but the rate was much higher in the past.
@Tamosree1993 (1525)
• India
22 Apr 12
Hello friend,
No friend the savings is also important for your vital time.
Have a nice day.
@jvincent_129 (4994)
• Philippines
21 Apr 12
I prefer to invest. I am more of a risk taker. If I can find something worth investing my money then why not. But before putting money you have to investigate and do deep research on that investment. Saving money is also smart but this is for those who don't like taking risk. It's still a better option than investing but losing money in the end. 
@substance (585)
• India
22 Apr 12
I also like to invest than to save money in the bank.
I loss $110 this month on a money cyclers site which was because of my own fault. I invested the $110 but I don't think the positions are gonna cycle any sooner in the future.
My advice, "never invest if you don't know the site properly and have not research it in depth". I joined because of a friend who was making good money but looks like it wasn't for me.
I loss $110 this month on a money cyclers site which was because of my own fault. I invested the $110 but I don't think the positions are gonna cycle any sooner in the future.
My advice, "never invest if you don't know the site properly and have not research it in depth". I joined because of a friend who was making good money but looks like it wasn't for me.@DoctorDidi (7018)
• India
19 Oct 12
I also believe the same like jvincent_129 that investment is ideal for those who are courageous enough to take risks in life. But to those who are not risk takers, saving is the ideal way.
@jvincent_129 (4994)
• Philippines
22 Apr 12
Yeah. It could work for him. But for other people it may not. Think twice. Before going into something, know about it and be careful.
@gerald_lian (2188)
• Australia
21 Apr 12
I would definitely choose investing. By just saving, you're not actually compounding what you have in hand. I believe if investing is done in an appropriate way and ample research is done prior to investing, investing can be a really great and safe way to compound one's savings and assets. Of course there will still be a bit of risk involved in investing, but overall the benefits we stand to gain would outweigh the risks. 
@DoctorDidi (7018)
• India
19 Oct 12
We all know that investment in the proper place is the ideal to make money. But it is very difficult to find out the proper place in spite of research. So the ideal way, I think, is an optimum combination of both.
@SomeCowgirl (32191)
• United States
21 Apr 12
I'd much rather save then invest, though I've thought of opening a CD account for a six month term and putting in $150.00 each month. I have a savings account now which gets deposited into via by debit card everytime I use it.
@DoctorDidi (7018)
• India
19 Oct 12
If you are not comfortable in investment, you should not go for it, rather, concentrate in saving which is the safest procedure, I think. So you have done the right job.
@DoctorDidi (7018)
• India
2 Oct 12
It is really a wise decision, every one should try to follow it if they want to make money. Gamble with a minor portion of your money and play safe with the major portion of your money so that if the minor portion is lost in such gambling, you need not be ruined financially.
@GemmaR (8517)
•
21 Apr 12
I always prefer to invest than save, because you can usually be sure that you're going to make more money by doing things this way. I currently invest in property, as the house prices in my country are very low at this moment in time. This has meant that now is the perfect time to buy as you can let out a property and be sure that it you want to sell it in 20 years time you are going to be able to get more money than you put into it, plus a lot of money that you have gained from letting your house out over the course of that time as well.
@DoctorDidi (7018)
• India
19 Oct 12
The problem is that investment needs courage and we, the common people, lack it very much in apprehension of losing our hard earned money. So we always hesitate and if ultimately we take the risk, we lose because the optimum time for that particular investment might have passed meanwhile. So, if one has to take any risk, one must take it in time.
@mervyn07 (437)
• Singapore
21 Apr 12
Investment is the definitely the way to go. But if u are looking into make quick out of it, u can forget about it, because investment need a longer time horizon. You can also leverage on professional to create the portfolio for u.
@DoctorDidi (7018)
• India
19 Oct 12
But if one does not know the ABC of investment, is it wise for that person to seek help of a professional to create a portfolio for self? Is there no chance of being cheated?
@DoctorDidi (7018)
• India
19 Oct 12
It is up to you. But I would suggest to go for investment after making necessary study about it and not to invest all you have; always lay by a portion of the amount as an emergency capital to tackle any crisis.
@DoctorDidi (7018)
• India
2 Oct 12
It is correct provided you know the technique. Otherwise, it may have a disastrous effect on you. So it is always wise to invest a minor portion in the stock market so that you are not completely ruined financially if you incur a loss in such investment.
@BOOVEY (5)
•
21 Apr 12
I think that both should be applied, for example investing your money is a very useful way of creating both economic safety and profit. However this is only if your investment is successful, If it is not the opposite applies. There are some safe ways of investing money with very little or no profit (meaning very little or no risks) that fully compensates inflation. These pay out more than if your money was placed in a bank.
@DoctorDidi (7018)
• India
19 Jul 12
I think, in case of investment, one must be an expert in the field. But most of us, the so called common people, have no expertise in the field. We are merely guided by advices of different experts in the newspapers or on the television channels. The ultimate result in most cases is a great loss and total departure from the field of investment for ever. So unless you know the ABC of investment, you should not try for it.
@ptrikha_2 (47062)
• India
18 Jul 12
I think more than preference, it is a question of what ratio to invest in debt instruments such as Short Term savings plan/Fixed Deposits/Term Plans vs how much we put into Mutual Funds/Index/Gilt funds or into direct Equities. Then, we also have options such as ULIPS/Guaranteed return plans/Company/Infrastructure bonds, wherein we need to be very careful while investing. We do need to take risks at times, since FDs/ Savinsg account do not give as much return which can counter inflationary pressures, or build wealth.
@myfb2009 (8296)
• Malaysia
22 Apr 12
As for me, since i am not a full-time worker anymore, i prefer to save my money in a low-risk saving account. Although it is not generating much interest but at least it is more stable. Maybe when i have more excess fund in future, i would invest some into a more profitable type of investment. But, it is always wise to make sure that the investment plan is stable before you invest any money into it. So, at this moment, i would only prefer saving for the future.
@Jevendiran (778)
• India
22 Apr 12
It depends on my economical situation. If i'm in need of more money, then I'll try to invest and earn. But if I'm happy with what I have, then i wont go for investment. Coz, I've seen many people who've lost themselves in earning money because of their extreme interest in investing.... For such people, life becomes very dry. They wont think of spending time with their beloved ones, they spend more time with computer, shares, etc.... I dont want money. I just want a happy, satisfied life....
@larish (2234)
• Philippines
26 Sep 12
I will save first in the bank. The interest of my savings/time deposit will be the money that I will use to invest on high risk investment like stocks. So that, just in case I lost, it won't hurt much because the money I use to invest on this investment are no longer hard earned but passive income from my savings.
@Tamosree1993 (1525)
• India
22 Apr 12
Hello friend,
I think the two things are important in our life. Savings is important in the vital time. And the invest is important for our restal life. So both are important.
Have a nice day.
@BigMoney25 (1286)
• Philippines
22 Apr 12
Well of course you are going a little bit of both if you want to have a great outcome. You need to save money so that you will have something to invest on a specific company or business. It is always smarter to invest, and of course it requires a lot of hardwork and dedication and also learning. You should have the right strategy in growing your money and investing it in whatever you want it to be invested in. You have to be smart and diligent in order for you to be an effective investor.
