Saving and Investing

The importance of saving and investing

There is a difference between saving and investment.

The stash, the bank, the wave of the office or cash under the mattress are typical examples of savings. Today, estostradicionales methods differ little savings with a bank checking account.

Saving has a purpose: to sacrifice current consumption for future consumption enjoy.

Inflation, constant headache that global future consumption decreases from the current dramatically. It Queuña savings today (and always) must be accompanied by a return.

Savings that delivers performance can be considered as an investment.

The investment involves risk. Savings really well. We never know what can happen in our country or in our own home that can have repercussions

that impair the value of our money. So irresponsibly but on fundamentals, it is natural that a person decides to consume today and say no to investment.

Clearly, the above is not the right way. Risk surrounds us. Can this be our last day of life no? (Knock on wood). But if we get to see tomorrow, I hope I have increased my money, at least a little.

There is an implicit rule for investment and may seem obvious, not all the investors take note: The investment exists because it is the means to accomplish a goal.

Why is it so important to have an objective to invest, if they understood that I invest anyway?

The answer is strategy. Your mission will tell us what time that instruments that institution, the risk and what return I can assume I need to reach my goal.

I want to go on vacation next year or want to be a heritage for my children?, I want to gather for a dignified retirement or want to enjoy the status it gives me the montañarusa ride the stock market?

The strategy is built upon the amount, term, averción the RISKS and the target, which in turn, the latter will set the strategy.

Summarizing the above:

It is important to invest (or save to performance), we should set ourselves a target of reason to exist on our investment, we must plan a strategy that is consistent with our goal.

And one last essential, be discipline, follow your strategy and never lose sight of your goal.

Invest

Franco Salzillo

www.unemprendedor.blogspot.com