Saving Versus Investing

 Either Saving or investing is about money. We collect some money for the future need or want. We hope our money increase, by saving and investing. 

I read a nice article from a famous blog that explain the difference between saving and investing. I think the article is simple and easy to understand for common people. Certainly,  the people should know the English language. 

Saving is actually for short term. You can save the money for your college or your first house. as your wealth increase and you have so much money. 

The article also explain when to save or invests? it is depend or your money too. save more money when you  do not have emergency fund. You can invest after you have money. the investing also for long term such as retirement and your kid college. Perhaps you have another high paid debt next. 

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Top Financial Planning Tips

Invest in yourself that will not lose your money

People talk about investing in stock market. They can own a company by buying it. They can sell the stock when the price is so high. The stock is very expensive, meaning you need money to buy it. You can also lose in stock too. Rather than thinking investment, you are better to invest in yourself. There are things that you can do to invest for yourself: 1. Education Some people who have so much money can take higher degree. Well, you who have no much money do not have to be desperate. You can read the book to increase your knowledge. There are lot things that you can read such as newspaper, magazine, journal, website, blog and others. You can take the short course that relevant to your jobs. For example, as a writer you can take the language course or journalistic course. Perhaps you will be a good writer after the course. 2. Notice your health You have to eat the good food that you can cook by yourself. It also saves some dollar. I prefer cooking than eating. I can cook anything that I like. You need some exercise too. You do not have to go to the club if you have no money. 3. Explore your idea Few people can get benefit from their idea. Some people get million dollar by creating a simple things. For example , the post it is a thing that gain million dollars. Perhaps you can find something .

The benefit of owning a stock

No one insane people said that the stock is better investment today. As the economic condition bad, the stock investment also becomes worse. Some stock does not pay the dividend again. Its price is also decreasing due to low demand of this investment.
However, some optimistic investor believes that the economic will recover. They think it is time to buy the cheap stock. They can buy the expensive stock cheap. Here is the benefit of owning company stock.

1. You own the company
By owning stock, you and other shareholder are the owner of  the company. If you have majority stock, you can lead the company. The majority shareholder has right to decide the company where they go.

2. You can sell it anytime
Stock is very liquid and you can sell it anytime you like. You have better to sell when the stock reach the peak.  Learn the statistical or technical of the stock. They have peak or valley. There is some sign that the stock will increase or decrease. A clever investor should buy the stock cheaply and sell it expensive.

3. Get the dividend
Some good company that can generate revenue will share the dividend to the shareholders. They want share Dividend can also increase the stock price. The company that always pay dividend to the investor is Blue Chip Company. It is not difficult to recognize the blue chip company. The stock market list some company that is included as Blue Chip Company.

4. Generate capital gain
The stock price is volatile. Sometimes it increases to the top but sometime it go down to peak. Before the dotcom bubble, the dotcom stock could rise over many times. Some investor get benefit by selling it.
Today, the stock price tends to decrease, but someday the stock will increase. Surely, you have to buy the right stock not junk stock. The right stock has some sign that you can analyze at the financial statement.

5. It does need saving and maintenance
Owning stock is not bored the holder or investor. The investor can save the stock at their house or the can save to the broker or safe deposit box that cost little money. You can save the stock at wardrobe or other safe place.

Certainly, the company stock is risky investment too. The investor can loss all entire money in a moment.

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What is investment that right for investment?
Stock Versus Mutual Fund
Stay Positive in Tight Economic

How the stock investor should do when crisis

Most Investor worries to their money in stock. The market index trend is decreases in three years after the sub mortgage crisis. Some investor has decided to sell all the stock and buy other asset that can give some benefit. Buying hard asset also guarantee the value of money. For example, buying car can increase our asset and we can use the car. Even though, the car price will decrease but it is not much.
It is the right investor to sell all the stock that they have; however, they do not just follow all people that sell the stock. The investor need to analyze the company whether they can generate revenue or not.
Selling the stock may decrease the profit of your stock because the demand is so low and no one want to buy the stock. Unless you believe that the company cannot operate again, you can sell all the stock. It is better to suffer small loss than suffering big loss.
Moving from stock to other assets is good but you must be sure that you move to right step.
Some investor put the money at certified deposit or bank account. The bank will guarantee our money but we cannot get satisfy return on those investment. The certified deposit interest is only two percent.
Some investor tries precious metal such as, gold, silver, palladium, and platinum. This investment is also good too. However, silver price had decreased on May 5th. This is a sign that that the demand of the metal decreases. Some investor may sell the silver for their necessity.
Despite of decreases silver, the silver is stable. It will not fall to the deep valley as the stock. The gold may be a good alternative to save your money recently. The gold bar has increased to 27 % in past twelve month. I believe no one stock that will give return as high as gold. People believe gold will never fall.
Some investor may buy the property such as land. The land keeps the value of asset but we should pay the land tax. We can rent the land to the farmer or businessman. They may use the land for farm crop or business.
I think we can put our investment in stock just 10% of our asset if we are risk avoider. The risk lover can put 40 to 50% asset to the stock.

How college student makes money

The duty of college student is study. They have to get good GPA so they can apply jobs at any place. Some parent forbids the student works for money. They afraid the kid will not finish the college or university. Some students who works or open a business often stop studying. They think they do not need to finish the college or university because they have so much money. Their parent must be disappointed after they sacrifice so much money in college.
The student actually can make some money and enlighten the school cost. Some jobs do not disturb the college such as,
1. Work for the professor. Some professor needs assistance for teaching or research. The student may assist the teacher to search the article, book, or browsing to find the subject. The professor often need handout for his lecture. The student can create a good presentation with PowerPoint or presentation.
Some professor has research with the company or the university. If the research has high budget, you can get high salary too.
The benefit of working for professor, you can get two benefits i.e, money and knowledge. If you want works for professor, you should have high GPA.
2. Writing for media or website
Some talented student can get money from media. Writing does not bother the student study. They can write an hours every day. The student can get $ 50 each article post in media. They also can make book. In my country, some elementary school can publish dozen.
3. Selling anything
My friend sells shirt or pants to the classmate. Perhaps the profit is not much but you can use the money for buying book or cloth. I have ever buy text book and get much revenue. If we have no time, we can also sell anything that student need it.
4. Online business
Due to advance internet, people can sell or buy anything on internet. Why do not you create online shop to sell book, CD, DVD, bag, Shirt, and else.
5. Investing
Most rich student will invest the money at stock or mutual fund. They can get little dollar from those investment.
They can seriously continue those kind jobs after finishing the college.