Saving and investment go hand in hand

Often investment and saving are used in a synonymous manner but they are poles apart. Saving is a virtue but of no use until you start investing what you save. Your money has the capability of paying you back and fulfil your future dreams. This could happen only when you invest keeping your future goals in your mind. Saving and investment differ from each other but you can’t do away either. Once you save only then can you invest and you can invest only when you save. 

Where to invest

This is a million-dollar question. But the answer is really simple. Decide your goal like buying a home, a car, probably own marriage or children’s education. Gauge the time that you have to reach these goals. If you have a long-term goal then the equity-based investment is a good idea. For short-term goals, a debt or a liquid fund investment could help. Before you start investing and after you start saving between the two you must accumulate money for emergency situations of life like a job loss or a salary cut. You should have a fund that could serve as your backup. It is advised to have six months expense as your back up fund. Founder of  Wise Invest Advisor Hemant Rustagi tells us that saving and investment are two sides of the same coin, two of them are different from each other but at the same time incomplete without each other. 

How much to save?

 This will be decided by how much money you require for your goals. You must consider the worth of your money by adjusting it against inflation. Whatever you intend to earn do consider the impact of inflation on that money.

Real Return

 Always calculate your return by adjusting inflation and tax. The real return is what you get in your hand when you minus inflation and minus taxes from it.