savings vs. investing
by: Haley Orders
Savings is the portion of current income not spent on consumption. There are some other terms that are involved with savings like assets and liquidity. Assets are everything someone owns that cant be sold for money. liquidity is how easily money can be turned into cash. Some big reasons you should develop a savings plan is because many people who don't are often not prepared for accidents and don't have the money right then to pay for that emergency. so you should make a savings plan to stay prepared and then you feel better knowing if something happens you can take care of it.
I looked at chase banks savings accounts. they offer three different plans. They have a basic savings account, a plus savings account and they have a CD account. the basic account you have to open with $25 the plus account you have to open with $100 and the CD account with $1'000. so there you have many options and that's just one bank.
investing is the purchase of assets with the goal of increasing future income. A big difference between savings and investing is the degree of liquidity. you should really not rely on investments to make money for emergency's because investments can take a while to make the money back that you put in. the plus to investing is it helps you gain wealth.