Saving And Investing

saving moneyThere is a big difference between saving and investment. The piggy bank, the wave of the office or the money under the mattress are typical examples of savings. Today, these differ slightly
traditional methods of saving with a bank checking account. The savings have a purpose: to sacrifice current consumption for future consumption enjoy. Inflation, constant headache global consumption lowers future with respect to the current dramatically. With savings today (and always), must be accompanied by a performance. Savings it offers a performance can be considered as an investment.

Investment involves risk. Actually saving too. No never know what can happen in our country or in our household that could have repercussions to undermine the value of our money. So irresponsibly but with fundamentals, it is natural that a person decides to consume today and say no to investment. Obviously, the above is not the correct way. The risk is all around us. This may be our last day of life? (touch wood). But if we will see tomorrow, I hope I have increased my money, at least a little.

There is an implicit rule for an investment and it may seem obvious, not all investors take into account the investment because there is the means to fulfill a goal. Why is it so important to have an objective to invest, and understand that if I invest anyway? The answer is strategy. Your objective is to tell how long, the instruments that institution, the risk and what return can I assume I need to achieve my goal.
Do I want to go on vacation next year or want to become a heritage for my children, “Do I want to join a dignified retirement or want to enjoy the status it gives me to climb the mountain. The strategy is built based on the amount, term and purpose, which in turn, the latter will set the strategy to follow.

Summarizing the above:
It is important to invest (or save for performance), must set an objective of our reason for existing investment, we plan a strategy that is consistent with our objective. And one last piece of advice essential, discipline know, follow your strategy and never lose sight of your goal.

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