Describe the difference between saving and investment

With savings, you are putting your money into an account where it will accrue interest but its trajectory is mostly a small line upward. It is safe and you will not lose it, as it is insured by the FDIC.

With investing, you buy pieces of companies or bonds or commodities and the value of those pieces rises and falls as the value of the companies, bonds, or commodities rises and falls. So, instead of the small line upward as seen with savings, it looks more like a roller coaster. That could mean you gain a lot or it could mean you lost a lot.

Answer: With reserve funds, you are placing your cash into a record where it will gather premium however its direction is for the most part a little line upward. It is sheltered and you won't lose it, as it is guaranteed by the FDIC.

With contributing, you purchase bits of organizations or bonds or items and the estimation of those pieces rises and falls as the estimation of the organizations, bonds, or products rises and falls. Along these lines, rather than the little line upward as observed with investment funds, it looks increasingly like a crazy ride. That could mean you increase a great deal or it could mean you lost a ton.

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