Opinion is divided as to which of the two is safer. Money in the bank earns little interest but there's no risk that you'll lose it unless inflation eats it all . . . Investing can either make you a lot of money or you could lose it all. So, guys, would you take the risk or let your money sit around safe in your bank account?
First of all, the whole "make a lot of money or lose it all" is the biggest misconception there is about investing. Risk management is a big part of knowing how to invest and when done properly protects you very well. The best thing is a mix of the two. Bank accounts usually have negative profit (inflation is higher than interest) so I'd be very carefull about keeping large amounts there. But you don't want to invest money that you will need at some point in the near future, so that is why you should find a good mix of both.
That's sound advice and I stand corrected. My fear of investing stems from a few bad investments I made in the past that didn't bring any returns. The reason I now understand is because I plunged right in believing that I'd make some swift cash without really factoring in the risks involved in the ventures. In future if I am to re-invest, I'll definitely be a little smarter.
Profit and risk go hand in hand. The higher the profits that you see, the higher the risks involved. If for some reason you think you've found an investing opportunity where the profit is high and the risk is low, then you really really need to double check everything because the most likely explanation is that you forgot or miscalculated something, or you simply don't have the same information as someone else does.
Putting your savings in a bank account may pay half of a percent interest in the U.S. Inflation is around 2% usually. So right off the bat you are losing money. I think it is riskier to leave your savings in an asset class that loses money every year. Look into some dividend paying stocks if you won't need this money for living expenses for a few years. The bluest of the blue chips are paying around 2.5% yield and there is always the possibility to price swings to the upside. Although to be honest, the market is fairly highly valued at the moment. So I would again stress to only invest if you have a few years before you will need the cash.
Agreed. Investing doesn't seem to be nearly as dangerous now as it used to be and I think the key is to not put all your eggs in one basket. Usually you don't just dump all of your money into a single stock, for example, so even if prices drop, you're not going to lose *everything.*
On the contrary, I'd say investing is a lot more risky now than it was in the past. The whole economy of this planet is really really crazy and confusing, mainly based on using money that one one has. (either borrowing money from someone, which may or may not be paid back. Or simply just creating more money out of nothing.) But yes, definitely diversify into different types of investments. Stocks, currencies, bonds, real estate etc etc.
Yeah i guess keeping amount in a safer manner is what that we need the most,Currently if we see a way of getting what we actually need is what that help us with understanding all the necessaries and because that is having an impact overall we can get to have all the statistics moving ahead and getting a better way from it.
Investing really isn't that dangerous, even for beginners. I'm up about 13% on my investments this year, and I'd have to say that's an average year for me. You should keep a decent percentage of your income in savings, but it doesn't hurt to jump into investments, too. Just never invest more money than you can spare to keep tied up in stocks or bonds. You'll find yourself in trouble if you need money in a pinch because investments are meant to be held onto for the long-term in most cases.
