ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Saving and investing are both important components of a healthy financial plan. Saving provides a safety net and a way to achieve short-term goals, while investing has the potential for higher long-term returns and can help achieve long-term financial goals. However, investing also comes with the risk of losing money.

Detailed explanation-2: -Why investing matters. Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.

Detailed explanation-3: -First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom.

Detailed explanation-4: -Saving can also mean putting your money into products such as a bank time account (CD). Investing-using some of your money with the aim of helping to make it grow by buying assets that might increase in value, such as stocks, property or shares in a mutual fund.

Detailed explanation-5: -# 1-You Stay Ahead of Inflation. # 2 – Investing Will Help You Build Wealth. # 3 – Investing Will Get You To Retirement (Or Early Retirement) # 4 – Investing Can Help You Save on Taxes. # 5 – Invest To Meet Other Financial Goals. 30-Jan-2023