Saving, Lending and Investing

Just for Thinking ....

Read? Saving, Life Insurance and Investing - 2nd Revist

Saving

When you put your saving with a bank and that money is still yours. You can take it back anytime if you wish too and the local banking law also offers you full protection up to a certain level.

Lending

When you buy bonds; you are actually lending to some institutions or corporations for a certain period of time. The money is no longer yours and not within your control. You are acting on good faith that the borrower will not default and return you your money when the loan period is up.

Investing

When you invest; you surrender your money to the market and the money is not yours anymore. The market will now decide how much money it can return to you if you want it back. But, there may be small consolation from time to time when the corporation has decided to return you some money out of their own pocket.