Don’t Invest for Short Term. Don’t Save for Long Term

Many times, we use the words Savings & Investing interchangeably. Some people don’t even realize the difference between these words.

 
One should not invest for short-term goals. One should not save for long-term goals.
 
So what should one do?
 
One should SAVE for short-term goals. One should INVEST for long-term goals.
 
By SAVE, I mean putting money in Savings Account, Fixed Deposits, Debt Funds, etc.
By INVEST, I mean putting money in good mutual fund schemes, stocks of good companies, etc.
As far as the short and the long terms are concerned, it totally depends on what you think. But generally,
  • Short-term is less than 3 to 5 years
  • Long-term is more than 5 years

So don’t forget. Don’t invest for short term and don’t save for long term. 🙂

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