There are different kinds of arguments in the financial world that gurus and laypeople like to engage themselves in. On a national scale, some question the devaluation of currencies to help improve the economy in the long run. On a personal scale, some argue about the wisdom in purchasing a particular stock. A few others discuss the power of compound interest. However, among all the different kinds of arguments, one of the most popular is that of savings vs. investment.

For as long as we care to remember, people have always wondered whether or not it is a better idea to save your money instead of investing it. While some would argue that you should indeed keep your cash in the bank, others will say it is an absolute waste of time. But, which of these schools of thought actually holds water considering the current economic situation? In a battle of savings vs. investment, which financial decision comes out on top? Let us examine both separately. Afterwards, maybe you’ll be able to make an inference.

Savings

In its most basic form, the entire purpose of saving is to preserve your money for future use. While there are different places you can save your money, banks are still the most popular options in today’s world.

Now, if your only intention is to save money so that you can use it in the future, then, saving in the bank is exactly what you want to do. The best part is that unlike the local “kolo,” banks would even give you interests if you save with them.

While this might seem like a good thing, things aren’t that simple. In fact, they become a whole lot more complicated when you factor in the country’s economy. In a country where inflation levels are constantly increasing, the value of your money would become lower and lower with every passing year.

READ MORE: https://valourdigest.com/savings-vs-investment-which-is-better/