The other day my husband and I were travelling by the local train, and I like to pay attention to the conversations happening around because they give me ideas for my fiction novels. These two ladies were sitting behind us and were having a ‘serious’ conversation about money. What caught my attention was that the one who was imparting her ‘knowledge’ was using the words investment and savings interchangeably. I am not sure about her friend, but that surely got me very confused. But it made me realised a lot of us confuse the two words.
Savings and investments cater to two very different goals, and two different types of products are required to achieve these goals. Use a more conservative approach for your short term goals which are typically for 2 to 3 years. For your long term goals which can be 7 to 10 years, you can take some risk.
I would invite you to watch this YouTube video by Pinnacle Advisory Group, where they very beautifully, break this down for us and explain what-what is.