Saving Money vs. Proper Business Investment
>> Wednesday, February 22, 2012
Summary: If you have a little bit of extra money to play with and want to start saving for the future, you have two main choices.
If you have a little bit of extra money to play with and want to start saving for the future, you have two main choices, save it, or try and use it to make a little more money. While both options can lead to financial security, there are positives and negatives to each option. The following are some of the pros and cons of saving your money versus proper business investment.
PRO’S
Saving Money
Putting your money aside in savings has always been a good idea, whether you are putting it in the bank or in a box under your bed. If you can get a good rate of interest, having your money in a savings account can make you a bit of extra money if you leave it untouched and earning interest. Having your money in a box under your bed won’t be earning you interest, though you will always have access to your savings, and have the peace of mind of knowing that no crash in the financial markets will be able to wipe out your hard earned money.
Proper Business Investment
There are all kinds of ways to invest your money, with the big benefit of proper business investment being that you can be using your money to make more money. Provided you are getting good advice on how and where to be doing your business investing, you can end up with far more money than any savings account interest can provide for you. Investing your money in starting your own small business is another great option, provided yours will be a niche needing to be filled, and that you know something about running a business. The most successful small businesses are those that target basic business needs, like providing printing services or telephone systems.
CON’S
Saving Money
While you may be able to get a little more for your money by having it in a savings account with a good rate of interest, just having your money in savings won’t allow you to make very much additional money. Furthermore, if your money is just in a box under your bed, you are in danger of having it stolen or lost somehow, making it quite a vulnerable way to keep such an important asset safe.
Proper Business Investment
While you can make quite a bit of money via business investments, there is definitely a risk involved, and should the wrong things happen in the financial markets, your hard earned investment could disappear overnight. You will also have less ability to get access to your money should you need it, as your money will be tied up in your investment and will generally be quite difficult to withdraw from prematurely, should you need it.
Even with the global financial markets so unpredictable these days, there are definitely still lots of great ways to keep your money safe and help it grow. The biggest decision is always how much you are willing to risk, which should never be more than you can afford to lose if things don’t work out. Having a diverse financial plan is best, so think about what you need from your finances, and make sure you and your money will be ready for anything.
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