Saving vs. Investment

Introduction: Saving and investment are two different sectors and the two categories of people thinking are different. Two categories people mean are rich-minded people and poor-minded people. Poor minded are like in saving and most of the rich-minded people are favorite in investment. Saving and investment are one another supporter. If people are saving money in the bank for some profit exchange. Bank saving amounts of various people make a big amount of this money.  This big amount bank gives to another company by loan, many time banks direct invest this amount and gain big profit. This profit call salary is distributed to his company employer. Employers are saving in most of the amount after his costing in the bank. So without saving investment is not possible. another side without investment saving is not possible.

Poor-minded people: Poor-minded people are like saving. These-minded people are afraid-minded. They can not take risks.  This kind of people is an all-time concern for the future.  Poor-minded people most of the earned money are saving for a better future or future emergency need money. For  Poor minds people a number of different savings options in various Financial institutions.  A saving plan is no risk and gets a low return. These minded people are not believed in investment, because investment has profit and loss. They do not agree with loss. Generally people after costing balance money. They are believed saving return is small but after a long term with interest, it will be a big amount. Then They are do use in some of part various purposes. This kind of people are hard to work for saving money but they are not interested in investment.   It is true Poor minded people for saving money in banks and bank this amount of investment by rich-minded people in various projects.  For this rich-minded people get easy money from the bank and they rich to richest. If poor-minded people are not saving money in the bank that from bank rich-minded people not get easy money and their all kind of investment stops. So poor-minded people money need for rich-minded people.

Rich-minded people: Rich-minded people are like is an investment. Because rich mined people are richest by investment. Most of the rich-minded people are not like saving. They know only investment makes money, Although investment has risk and will lose all money. But rich-minded people are taking a risk for investment. For they are growth rate high. Rich-minded people are investment various sectors. Such as the share market. Gold. Real state, bond, and many many sectors. This kind of person gets a loan from a bank or financial institute for investment. As result, rich-minded people earn a lot of money and again investment. This kind of people is know how to make money by use money. Many times rich minded people make money without use money. This kind of people in this time use the brain.

Rich-minded people are independent, all-time thinking investment, Long term vision. These minded people are skills, Passion Minded,  Doing Salesmanship. For this rich-minded people change in-country and international Because this kind of people dream is big. When they implement his dream that time needs investment. For investment, they need money long terms and they go to the bank. Banks give this money to rich-minded people by loan easily because poor-minded people are long-term saving money in the bank.


Saving: After costing balance money on his hand of people save in bank for own and his family security cell Saving. Other side People consuming less in the present for more consume in the future. It cell saving. In the United States, the American total GDP of 17.87% in savings in  2018. The U.S. personal saving rate is 17.8 % In July 2020.  ‘Price is what you pay; value is what you get.’ Warren Buffet Letter to shareholders, 2008 “Long time ago, Ben Graham taught to me. Buffett says, “Don’t save what is left after spending; spend what is left after saving.”  It is true  Most of the American peoples are saving money after spending. This result many time they have no money on his hand. So if people of American follow the roles of  Warren Buffet’s approach that they can make the best future. If now your age is 25 years old and you purchase the S& P index fund for 10000 $ per year and wait for 25 years. Interest rate   =7%, compound interest rate annually. After 25 years your age is 50 years, then you get roughly you get 732000 $.  So everybody needs a long-term saving plan, such as 25 years,30 years,35 years.  Every American people if save money in USA bank with long terms. Then American Economy will be strong. For this saving money, rich-minded people have invested much many investment sectors. As result, many Americans get jobs easily. People’s hands will become money. This money by people spent for own needs. As a result, the money will become to market and various thing demand will be made. For strong demand, economical cycles will be run. This countries economy will be very strong whose economical cycles will be run very speedily. Last words if  American people long term save money in the bank that it value is down. Such as  American  saving  interest rate – 0.8% -0.9% APY but inflation rate -1.81% (2019). So Every year will be lost by approximately 1%.( 100$ Original value is 99$). If anybody  1000$ save in American Bank, Per years loss 1% means = 10$, After 25 years 1000$ value will be  750$ and loss 250$ (10$ x 25years = 250$) .  I am not against saving.  American people need was Saving and investment two theory apply.


Investment: An Investment is one kind of asset that buys for future good return with value gain. It will create wealth for the future. An investment all time do some costing for a greater payout. So Investment means create an income source, create assets in the future, create more profit when selling time. Various types of the investment sector in the united state. Such as Bond, Share market, mutual fund, CD Certificate, real estate property, retirement plan, High-yield savings accounts, Money market accounts, Treasury securities, Government bond funds, Short-term corporate bond funds, S&P 500 index funds, Dividend stock funds, Nasdaq 100 index funds, Rental housing, Municipal bond funds, Investment Funds, Bank Products, Options, Annuities, Alternative and Complex Products, Initial Coin Offerings and Cryptocurrencies, Commodity Futures, Security Futures, Insurance and more. In the United states’ Total National GDP 20.1% investment in Jun 2020. 22.5% average investment share of National GDP  in Mar 1947 to Jun 2020. In the United states’ stock market more than half of U.S. households have some investment. Most of the rich-minded people are world living in the United States. They know the various policy for investment in the world and know how to make money.  For investment, rich-minded people are read more books and long term thinking. They take a risk for investment. Rich-minded people apply all-time long-term investment theory. Rich-minded people for investment poor-minded can change our living style. Especially when rich-minded people are investing in microfinance programs. Microfinance many people are called microcredit.  Dr. Muhammad Yunus is a creator of Microcredit. He was a professor at Chittagong University in the economics department in Bangladesh.  He was a friend of poor people. He was first to start in the microfinance program besides his job field in Chittagong. He gives small size loan to poor people from his own fund without any security and weekly payment installment systems. As result, poor people are paid weekly loan installment and he made a small business by changing his family living style.  For this rich-minded people change national and the world by investment theory. This kind of people is see everything positive.

Conclusion:  Last we see saving and investment one another connection. Without saving investment is not possible and without investment, money does not come from hand. The main thing is People’s minds. He will be deciding which part is going saving or investment. First, any people will be to know of own. His mind is weak or strong. His goal is long or short.  He can resolve risk. He sees dreams big or small. He is a daydreamer or dreamer. Is he want a rich or like poor lifestyle. Is he want anything for his country or people. He likes freedom thinking or he like captivity thinking. Is he want to develop for own. He is like reading for his own or gossiping with his friends. Then he will take decision-saving or investment. Basically  Poor minded people are like saving and rich-minded people are like an investment. Here Poor minded means not poor people and rich-minded means, not rich people. It is understood only minded. Every people need to follow in saving and investment.  For this follow the rules in rich-minded people, then one-day poor minded people will be rich.

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