Southbourne Group Singapore, Tokyo Japan Investing or Saving: What to do

Southbourne Group Singapore, Tokyo Japan on Investing or Saving: What to do
What is the difference between investing money and saving money?
Although they seem to be similar, they mean entirely different things.
Knowing the difference and applying that knowledge can help you
build your personal wealth.
So many novice investors do not realize the fact that the two have
different uses and have distinctive roles in their financial approach
and balance sheet. As you begin the adventure of enhancing your
wealth and establishing financial freedom, learn how to avoid
problems by properly dividing and allocating your money.
A lot of individuals, in spite of having great portfolios, lost everything
for not having given sufficient respect to cash in their portfolio. Cash
has exceedingly greater use than merely for making more cash.
To appreciate the use of cash, let us see how investing and saving
differ.
Defining what Saving Money Means
The idea saving money involves keeping hard, cold cash in a secure place, as well in liquid (that is, easy to access or sell in
a matter of days) assets. This includes checking accounts and guaranteed savings accounts. You can also include U.S.
Treasury bills or money market accounts, although the latter involves a lot of monitoring work.
Most of all, your cash funds should always be ready to use for your needs; available at any time for immediate withdrawal
with the least delay under any circumstances. Most rich and famous investors, including veteran investors who went
through the Great Depression, strongly recommend hiding plenty of cash in secret storages even if that will incur a big
expense in terms of profit loss.
Although the papers did not carry the news, back in the 2008-2009 market collapse, some hedge fund managers were
apparently asking their spouses to withdraw as much cash as possible from ATMs, expecting the whole economy to
collapse and limiting the availability of greenbacks for a short period..
After you have ascertained the preservation of your capital should you consider secondary measures for money you have
kept in savings. That is, hedging against inflation.
Defining What Investing Money Means
Investing money involves using your money or capital to acquire an asset with the potential of producing a safe and
reasonable rate of return, allowing you to build wealth even through volatile periods, which can run into years. Genuine
investments have a certain factor of safety, usually in the form of assets or owner returns. From your basic lesson in novice
investing, the most productive investments are such assets as bonds, stocks and real estate.
What is the Desirable Ratio between Savings and Investments?
As a rule, saving money should generally take precedence over investing money. Consider it as the foundation over which
you will erect your financial house. For a very simple reason: Unless you have inherited a sizeable amount of wealth, your
savings alone will generate the capital to support your investments. During the lean periods when you will need cash,
chances are you will have to sell your investments at the most inopportune time. Such an event would set you back by a big
stretch.
Two major kinds of savings strategies should become part of your financial concern. They are:
 As usually recommended by experts, your savings should be enough to address all your personal needs, such as
food, mortgage, utility bills, loan payments, insurance costs and clothing expenses for a period of six months.
Hence, in case you lose your job, you still have enough time to cope with the crisis without the daily stress of
working for a regular salary.
 Whatever specific goal in your life that will demand a big amount of cash for at least 5 years should be powered by
savings, not by investments. In the short-term run, the stock market can be considerably volatile, taking away 50%