Wednesday, September 21, 2011

Saving and Investing Are Not the Same Thing

Saving and Investing Are Not the Same Thing

Here’s another way you could be hurt by confusing saving and investing. Let’s say you are trying tosave up for a down payment on your dream home. You know that the interest rate you’ll get on a savings account is downright pathetic so you decide to invest your entire stash in the stock market. And then the stock market takes a nosedive and all of your savings disappear into thin air. Bye-bye dream house.

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