Why Investing is Better than Saving

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Do you really know huge difference between investing vs saving money? Interestingly, lots of people still do not have any idea or not able to distinguish between both. Here is some important points to help you to understand why investing is better than saving.

1. Investing build wealth overtime

Comparing with saving, investing has the ability to build wealth over time utilizing two important factors, Dollar Cost Averaging and Compounding power. If you save money to the bank account or keep in hand as liquid, money losing its opportunity to build wealth for long time. This is the major reason intelligent investors are investing and re-investing their money time to time.

2. Investing will beat inflation

One of the disadvantages of saving is, it is not able to beat the inflation or recession. But investing to the right investment instruments would help investors to beat inflation and create enormous wealth for long run.

3. Attaining goals

Investment is the best option to achieve various financial goals of a person. Savings do not have that capacity to generate enough wealth because the returns from saving is limited. For example, If you are planning for retirement and started investing your savings to the right investment products such as stocks, it would even help you to retire early. For long run, investment has tremendous power to build wealth.

4. Investing reduce taxes

Yes, investing can reduce taxes in multiple way. For example, if you invest in ELSS funds, ULIP, PPF, NSC, NPS in India, there will be a tax reduction available while filing the tax. Check the tax exemption facilities in the respective countries from where you are in.

Conclusion

Investing considering as the best option because it would ultimately makes your money works for you.