Many times, we use the words Savings & Investing interchangeably. Some people don’t even realize the difference between these words. While surfing through financial blogs, we found thisand decided that this issue needs to be taken up at Stable Investor.
One should not invest for short term goals. One should not save for long term goals.
So what should one do?
One should SAVE for short term goals. One should INVEST for long term goals.
By SAVE, we mean putting money in Savings Account, Fixed Deposits, Money Market Funds, etc.
As far as short and long terms are concerned, it totally depends on what you think. For us –
- Short-term: Less than or equal to three-years
- Long-term: Greater than three-years
So don’t forget. Don’t invest for short term and don’t save for long term. 🙂
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