Comments on: What is the Difference Between Saving and Investing? http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/ Making You a Winner at Money and Life Sat, 19 May 2012 22:49:31 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: The 3 Stages of Financial Freedom | Invest It Wisely http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-10674 The 3 Stages of Financial Freedom | Invest It Wisely Sat, 28 Jan 2012 21:59:00 +0000 http://personalfinancebythebook.com/?p=2399#comment-10674 [...] Whether you make a large income or a small income, the absolute most important component of achieving financial independence is spending less than you earn. It just takes some saving and investing. [...] [...] Whether you make a large income or a small income, the absolute most important component of achieving financial independence is spending less than you earn. It just takes some saving and investing. [...]

]]> By: How Those “Easy Payments” Can Wreck Your Finances http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-7957 How Those “Easy Payments” Can Wreck Your Finances Tue, 21 Jun 2011 15:56:21 +0000 http://personalfinancebythebook.com/?p=2399#comment-7957 [...] Let’s look at John and Deborah’s finances a bit closer. With their $5,000 income, they pay $1,200 for mortgage and escrow, $600 for two “easy” car payments, $250 for TV and computer (more easy payments), $200 for kitchen appliances (easy payments again), $150 on various credit cards (even more easy payments) and now $375 for furniture. That leaves them $2,225. Not bad. But they pay $400 a month for health insurance and another $500 for utilities, cell phones and satellite TV. Gasoline is $400 (they both commute) and they spend another $800 for food (they eat out a lot). That $5000 is now down to $125. They did say that things would be a bit tight, didn’t they? Did I mention that they have no savings? [...] [...] Let’s look at John and Deborah’s finances a bit closer. With their $5,000 income, they pay $1,200 for mortgage and escrow, $600 for two “easy” car payments, $250 for TV and computer (more easy payments), $200 for kitchen appliances (easy payments again), $150 on various credit cards (even more easy payments) and now $375 for furniture. That leaves them $2,225. Not bad. But they pay $400 a month for health insurance and another $500 for utilities, cell phones and satellite TV. Gasoline is $400 (they both commute) and they spend another $800 for food (they eat out a lot). That $5000 is now down to $125. They did say that things would be a bit tight, didn’t they? Did I mention that they have no savings? [...]

]]> By: David Lorenz http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-4459 David Lorenz Wed, 20 Oct 2010 22:35:11 +0000 http://personalfinancebythebook.com/?p=2399#comment-4459 When fellow college students ask me if investing is a good option, I always tell them that the stock market has never gone down in a 20 year period, but now I know that it is actually 15! Hopefully this information will encourage college students to invest as soon as possible. Thanks for the post, great information on where to draw the line between saving and investing. I also use 5 years as a benchmark for the line, but that is only because I like round numbers and 10 is too long. When fellow college students ask me if investing is a good option, I always tell them that the stock market has never gone down in a 20 year period, but now I know that it is actually 15! Hopefully this information will encourage college students to invest as soon as possible.

Thanks for the post, great information on where to draw the line between saving and investing. I also use 5 years as a benchmark for the line, but that is only because I like round numbers and 10 is too long.

]]> By: Are You a Tigger, an Eeyore, or a Pooh? http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-2951 Are You a Tigger, an Eeyore, or a Pooh? Thu, 22 Jul 2010 02:30:18 +0000 http://personalfinancebythebook.com/?p=2399#comment-2951 [...] consternation. Why? Tigger doesn’t have the patience to wait out down cycles in the market. If an investment doesn’t do well immediately, Tigger will simply bounce over to another [...] [...] consternation. Why? Tigger doesn’t have the patience to wait out down cycles in the market. If an investment doesn’t do well immediately, Tigger will simply bounce over to another [...]

]]> By: Announcement: featured in 2 blog carnivals http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-2752 Announcement: featured in 2 blog carnivals Mon, 05 Jul 2010 04:08:08 +0000 http://personalfinancebythebook.com/?p=2399#comment-2752 [...] finance posts. There are some great articles here, from Personal Finance by the Book’s What is the Difference Between Saving and Investing? [...] [...] finance posts. There are some great articles here, from Personal Finance by the Book’s What is the Difference Between Saving and Investing? [...]

]]> By: Best of Money Carnival #57 on Debt Free Adventure http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-2666 Best of Money Carnival #57 on Debt Free Adventure Tue, 29 Jun 2010 10:01:50 +0000 http://personalfinancebythebook.com/?p=2399#comment-2666 [...] financially… but also spiritually – and we all need that!Number 4Joe Plemon brings us What is the Difference Between Saving and Investing? on Personal Finance By The BookMost of us innately know that saving and investing are not the same, [...] [...] financially… but also spiritually – and we all need that!Number 4Joe Plemon brings us What is the Difference Between Saving and Investing? on Personal Finance By The BookMost of us innately know that saving and investing are not the same, [...]

]]> By: Carol@inthetrenches http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-2606 Carol@inthetrenches Thu, 24 Jun 2010 21:58:47 +0000 http://personalfinancebythebook.com/?p=2399#comment-2606 We must be talking about different types of bonds but I did check with the bank to make sure. The series EE bonds were what I was referring to. A bond that costs $25 today would be worth $50 in 18 years. Yes, that is not nearly as quickly as the old 7 year but would still be worth considering for long term such as retirement or college fund if the intent is saving. They can be cashed earlier if needed. Investing could obviously produce a higher yield with the various risk factors associated. They also have the I bonds that are purchased at face value and earn interest. The rates on those change every April and Oct. We must be talking about different types of bonds but I did check with the bank to make sure. The series EE bonds were what I was referring to. A bond that costs $25 today would be worth $50 in 18 years. Yes, that is not nearly as quickly as the old 7 year but would still be worth considering for long term such as retirement or college fund if the intent is saving. They can be cashed earlier if needed. Investing could obviously produce a higher yield with the various risk factors associated. They also have the I bonds that are purchased at face value and earn interest. The rates on those change every April and Oct.

]]> By: Darren http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-2604 Darren Thu, 24 Jun 2010 20:50:59 +0000 http://personalfinancebythebook.com/?p=2399#comment-2604 Carol, since bonds have a 30 year period until maturity, I don't think they make sense as a savings vehicle for college (unless you're planning for an unborn child). They currently have a yield of a bit over 4%, so you'd have to be willing to accept that. On the other hand, 10-year notes have a yield of about 3.5%. Carol, since bonds have a 30 year period until maturity, I don’t think they make sense as a savings vehicle for college (unless you’re planning for an unborn child). They currently have a yield of a bit over 4%, so you’d have to be willing to accept that. On the other hand, 10-year notes have a yield of about 3.5%.

]]> By: Carol@inthetrenches http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-2601 Carol@inthetrenches Thu, 24 Jun 2010 18:42:18 +0000 http://personalfinancebythebook.com/?p=2399#comment-2601 Wouldn't U.S. Savings Bonds acheive the higher yield that you're looking for while minimizing the risk? Wouldn’t U.S. Savings Bonds acheive the higher yield that you’re looking for while minimizing the risk?

]]> By: Darren http://personalfinancebythebook.com/what-is-the-difference-between-saving-and-investing/comment-page-1/#comment-2598 Darren Thu, 24 Jun 2010 15:42:39 +0000 http://personalfinancebythebook.com/?p=2399#comment-2598 No worries, I think I understand what you mean and I'm not trying to step on any toes. I still do feel as though five years is a bit short of a timeframe to ride out fluctuations, but that's just a personal opinion. As far as college funding, I do think using a mix of investments and savings is ok. College is at least 18 years down the road for a child, giving plenty of time to put some money in the market and ride out market fluctuations in hopes of better returns. But the key is starting early. That's why I'm a big proponent of planning as soon as possible. Perhaps the day a child is born, or even beforehand, is a good time to be talking about these issues. Hope this makes sense as well. No worries, I think I understand what you mean and I’m not trying to step on any toes. I still do feel as though five years is a bit short of a timeframe to ride out fluctuations, but that’s just a personal opinion.

As far as college funding, I do think using a mix of investments and savings is ok. College is at least 18 years down the road for a child, giving plenty of time to put some money in the market and ride out market fluctuations in hopes of better returns. But the key is starting early. That’s why I’m a big proponent of planning as soon as possible. Perhaps the day a child is born, or even beforehand, is a good time to be talking about these issues.

Hope this makes sense as well.

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