Sometimes the best investments are the ones that are not made.

Most financial advice is related to allocating or putting money into the best possible Investment option for greatest returns. However with these investments come risks, that can make or break a person's finances.

BY SIRJAN | 2 MIN READ

Each and every person has two major options to handle their finances that are leftover after consumption expenditure- Savings and Investment. Savings basically refer to the money put aside for future use. Investments, however refer to allocating the money into an area that could be an asset, programme or any such thing that bears returns, hence benefitting the investor.

While some people believe that it is better to Invest as there are returns while savings are usually dormant on the other hand.

The problem with Investments is that they are usually linked with risks and where there is a chance of a gain, there is also a possibility of loss. With this quote, we draw a comparison between Savings and Investment.

The major difference between saving and investing is risk. It is savings that are put into a savings account like a money market account or Certificate of Deposit. There is little risk of loss of funds, however it also has minimal or sometimes no gains.

Another difference is interest, or money made. In investing, investments make money, while the goal of saving is to keep the money safe from spending.

It is possible to be a wonderful investor, and have investment properties, but be unable to become successful because of lack of understanding of saving short term funds.

At times, saving money and letting it remain idle is more beneficial than Investing it elsewhere. This is exactly what this quote signifies. Investments are risky in nature, they can turn out to be undesirable and detrimental sometimes. Therefore, in certain situations it is better to not make any investments since in such scenarios saving money and letting it be is more beneficial for a person.

Such a case may arise in times of political instability, economic crashes and other unfavorable scenarios.