Although from a small already known about finance, still when we grow up we do not want to expand its financial knowledge. Most people just know about how to earn money and spend money. In fact, there is still much to learn about finance so that we can minimize the mistake in financial management.
Well, one of the financial problems that often become a conversation among ordinary people is that they assume saving and investment is the same or saving one form of investment. Is that true?
Apparently, the assumption is wrong alias is not true, because both have different meanings.
Savings and investments, in peel from the side of the definition, characteristics and types of products, are different. In order for your financial knowledge to increase, here are some explanations that must be understood about the difference of saving and investment.
Definitions of Savings and Investments
Saving is a money saving activity that is set aside from daily or monthly earnings. Generally savings are kept in a safe place. Although from a small already taught to save in piggy banks, but in today’s era, most people have moved to a safer place, namely the bank. Well, those savings keep your money. Furthermore, money in savings can be withdrawn at any time when you need it.
Meanwhile, investment is the purchase of monetary assets that have value, where the value of the amount of funds you invest could potentially increase and vice versa, decrease. This investment also has a huge advantage over the long term, which can increase the amount of wealth owned.
Characteristics of Saving and Investment
The money saved in the form of savings, in general can be used when needed when circumstances urgent. So saving can be categorized short-term savings.
This is very different from the investment that has the main goal as a form of not long deposit. Usually every investment has a certain period, for example, a period of 5 years, 10 years and even more. That way, as investors have more hope in the future.
2. Access Usage
In general, saving has a bending nature. So, access to its use is very easy so it can freely use it. Conversely with investments that have the nature of not flexible because it has a period that has been determined. So it’s hard to use. However, depending on the type of investment selected. For example, gold is easier to use compared with other types of investment.
3. Level of Risk
Given the amount of funds deposited on investments greater than savings, other than that the yield of investment is generally higher than bank interest. Therefore, it can be interpreted that the level of risk on investment is much higher than saving that has a low risk.
Another risk, investment is much higher because it is also vulnerable to investment bodong with fast-earning rates in a short time. It’s important, as a smart investor to choose the right type and investment company.
4. Profit Sources
If saving in a piggy bank certainly will not gain more, but if you do in the bank then there are benefits that can be obtained, namely in the form of flowers. While the source of profit on the investment that can be obtained is the yield.
Types of Saving
1. Piggy Bank or Save at Home
saving piggy banks
Using piggy banks is now not loved by people but a few still have to do this. The advantage of saving at home, which can be needed anytime. In addition, not having the risk just need to keep it well. Do not let you have deviated a considerable amount of money and then happened unfortunate like theft or fire that obliterate your savings money.
In general, savings do not have the risk of even control and interest rates are relatively low at 6% per year. These savings can be availed at any time as needed. Transactions that are very easy to make this type of savings most people choose.
Of course, savings in the bank also there is a deduction of administrative costs per month charged to customers. But saving in this bank is much safer than at home. Your savings are also guaranteed by the Deposit Insurance Agency (LPS) up to Rp2 billion in case of failure in the associated bank. asuransi pendidikan
Deposits have the advantage of interest greater than savings, and the level of risk is low. Deposits require a certain amount of money to be stored and can not be withdrawn within a certain period. Generally, deposits start from Rp10 million with 1 month with interest ranging from 4% per year, depending on the offer each. Then, if your deposit is found, then you will be fined for looking before the due date.
1. Mutual Funds
Mutual funds is a container to raise funds from investors, then the funds will be managed by the investment manager to form a portfolio of stocks, bonds, and so forth. There are advantages of mutual funds such as investors will be assisted investment managers when management and investment is widespread so as to avoid the magnitude of risk.
In addition, the investment of this mutual fund can also start with a capital of only Rp100 thousand. Currently there are many online mutual fund supermarket where you can buy mutual funds online. Related profits, this mutual fund has a profit adjusted to the type of mutual funds you choose later, of course, stock mutual funds have high profits and risks are also high compared with fixed income mutual funds.
Bonds are debt certificates issued by the bond issuer to the bondholders and the promise to repay the principal and interest coupon on the due date of payment.
The advantages of the bonds are fixed income in the form of coupons, investors will also be capital gain and large interest when compared with deposits. While the shortcomings, among them have a high risk of failure of bonds and interest rates, In addition, difficult to disbursed, and if the debtors went bankrupt, then the amount of money that has been deposited can not be returned again.
Shares are units of value or bookkeeping in various financial instruments that refer to the share of a company.
The advantage of investing in shares is the capital required is not too large, especially now there is a stock netting program from the Indonesia Stock Exchange. Only with a capital of only Rp100 thousand, you can already have an investor account and buy shares through the program Yuk Nabung Share! Questioning the yield, high-potential stocks make a significant profit. However, the risk of loss is also high with many factors that affect it, ranging from corporate business, macro and micro economic factors.
Gold is one type of investment that many loved the community. Most people choose gold either in the form of precious metal gold or jewelry. The reason, gold, including assets that are easy to sell, durable and stable prices even tend to rise. But, there is a considerable loss when the price of gold fell drastically, get the benefits are not routine and can only be obtained long term.
Property is an investment that is very famous among investors. Capital for property investment is quite large, but the advantages that will be in when choosing this investment is to have a small risk and will get a routine profit if the property is re-leased.
Do Both and Choose As Needed
Never hesitate if you want to do your best to protect your finances and your family. In fact, if saving and investment can be run, it will get very big results. That way, will also give effect to the amount of wealth that will increase.
Choose the best product type as needed. Avoid bodong companies that offer savings or investment services with unreasonable lure. We recommend that you find out information thoroughly through the internet or ask directly to friends or relatives who already have experience.