Difference between Savings and Investments

.     What is the difference between the positive and negative side of savings and investments ?

       Most of the people do not have the basic idea about it, as a result we have to depend on some other sources like internet, finance advisor, chartart accountant etc. For this reason most of the people are confused what to do with their leftover money after having pay their all expenditure. Here is some informations below........

.    Differences :

       Most of us start our savings from our childhood at home in our lock and key mini bank (container). It is the money we save it for any emergency to use. On the other hand Investment is totally different concept altogether because, in the case of savings, the money aside remains almost the same. But in the case of  investments, we have an opportunity to put our money into other ventures and grow our wealth by compounding (rates/interests). The money is generated by investing it in Mutual funds, stocks, bonds, commodities, flats, vacant lands and others.

·  Uses :

       Savings means that we can use the money for emergency purposes whereas, an investment means it requires a venture to increase the original fund that we put in.

       Investment requires a particular period of time which can be  from a few months to several years. Which also helps us for Tax Savings

·  Withdrawal:

       Savings are much more easier to extract them from the bank and pay off any additional expenses. Investments, however, require some planning to spending it. If we decide to claim our money, it will not be instantly and is bound to take time and therefore. If we plan to spend our invested money, we have to plan ahead and have to wait until the last moment to withdraw it.

·  Risks:

      Savings have no risks because there is a very low rate of interest. But in the case of Investments, however, are subject to rise and fall in the value of the company/market/bonds we have invested in. The most unfortunate truth about investments is that it is totally depends upon the rise and fall of the market value.


· What to do ?

      Considering the risk factors, most people go with normal savings instead of investments to avoid the risks, if at all possible. However, despite the risk factor, sometimes investment is the smarter choice. If we do not have to touch such money for more than 5 years, we should consider to invest it in a proper fund with long-term.

      So the positives and negatives of both options help us  to plan for our future. However, every body needs to check his/her own financial background and then make a plan for the investments.

Indians are confused, coin rejected, complain filed

Accross the country peoples are much confused for present economic condition. As because this miserable condition made the people very much calculative on their expenditure. They  don't want to waste a single paisa without any proper reason.

In this economic crunchy period  people of India are thinking twice or thrice before spending Rs. 10 only.  Coin of  Rs. 10 has  created a new problem among the people.  Though the Govt. has announced repeatedly not to be feared about the coin of Rs. 10 but being in a cash crunchy situation, people could not rely on it. People are frustrated with a little money in their hands.

Accross North Bengal, people are facing problems in using Rs. 10 coin as legal tender. Shop owners to Bus conductor to Toto drivers, every body rejecting the Rs. 10 coin and mentioning that "fake" coins are in the market.

As a result in Jalpaiguri town, a resident filed a police complaint, alleging that one of the LPG agency had refused to accept Rs. 10 coins from him.

According to the complain police sources assured the complaint not to be worried, they will investigate the case and also said that they will share their findings with the district administration.

Economically miserable condition for Indians

Economically miserable condition  for Indians

                       A  chaotic situation prevailed at ATM and Banks for last few days in India. Not only the Indians but  also the overseas tourists are facing a log and frustrating wait to exchange demonetised   currency notes and withdraw much needed cash.

                      

                      There is no different situation  could be seen in any part of India. The scenario is same all over the India. People began to gather in droves outside the banks and ATM since the morning, wait and wait... till they collect the money. Some times unfortunates are coming back at home with their empty pockets and start praying God for the next morning.  

  

                      Now the question arises  how longer people will able to remain their patience ? 

                     But the Indian Prime Minister Narendra Modi demanded only 50 days from the Indians to normalise the present economic uncertainty of India.                       

Economic Uncertainty & The Indians

       A great, bold, unexpected and sudden announcement made by the Indian Prime Minister Narendra Modi to withdrawal of Rs 500/- and Rs. 1000/- currency notes from the midnight of 8^th November.

    I think there are three reasons behind it mostly. It seems to me these reasons are distinct and interrelated.

1. Restricting the hoarding of cash as blackmoney.
2. Curtailing the use of cash to finance terrorist activities and illegal transactions as in the narcotics market.

3. Teasing out counterfeited notes which are in circulation.

    This trio plays the most important role in social, political and economic losses for the nation.

     In the Indian market people are always used the currency note of Rs. 500/- and Rs. 1000/- but within a few hours it became only a pice of paper. How many people depend on the electronic money of cheques, drafts and credit cards?

      The common people facing the most problematic situation due to this sudden decision. The bank and post office trying to do their best for tackling this emergency situation. But most worrying of all, will bank and post offices have enough new currency note in the next few days to meet the demand? There are a huge crowd in front of every bank in India,  people are facing too many hazards to collect of exchange the money everyday. But it is expected , that the rush is going on severe in the first few days and few days later it will be in normalize.

      But now the most valuable question arises in the in the mind of Indians that is it only a political gimmick of Indian Govt. or will it be able to meet its objectives of curbing the shadow economy? It is clear to the Indians that they should have to enter in the banking stream to save their hoaring money.

       So, as an Indian now we need to wait and see, time will tell us the truth either economy will become a strong position in India or not?