SAVING VERSES INVESTING

Now I am no Financial expert, but I do know one thing, most of us want financial security, most of us would like more money, most of us with any money wants to increase it, and the internet is riff with the good bad and ugly tips, advice and dangers about letting go of your hard earned cash.

article by Diane Shawe

I am a business entrepreneur, out there it is hard to raise small and proper investment that is not going to cripple your business or if your time sensitive and need to make critical investments that will impact the growth of your business, jumping through months of investigative hoops by funding administrator (who are important) could loose you that business opportunity.

So I started to check out alternate and then looked at the savers out there and shook my head at the very low returns they received from there banks savings.

I also saw the levels of complaints from some of them who lost thousands from these online trading platforms.

So here’s what I found and suggest: In vest in local small businesses here’s why:

What’s the difference between saving and investing?

Saving – is putting money aside, bit by bit. You usually save up to pay for something specific, like a holiday, a deposit on a home, or to cover any emergencies that might crop up, like a broken boiler. Saving usually means putting your money into cash products, such as a savings account in a bank or building society.

Because of persistent low interest rates anyone looking for decent Returns that are also safe has had a tough time for several years most of the best saving accounts for instance don’t even top 1.5% annual yield.

Investing – is taking some of your money and trying to make it grow by buying things you think will increase in value. For example, you might invest in stocks, property, businesses or shares in a fund.

What is Peer to Peer Investing

What is peer to peer investing it is a practice of investing money in notes issued by Borrowers who are requesting a loan without going through the traditional financial intermediaries and who are known to the Investor there is an individual investor and an individual borrower.

The key characteristics of peer to peer lending are it is conducted for profits so there is no necessary common Bond or prior relationship between lender and borrower 3 into mediation takes place by peer to peer lending company for transaction takes place online or in-person 5 lenders may choose which borrow to invest in the loans are unsecured and not protected by government insurance The loans are securities that can be sold to other lenders.

We have seen the growth of online Crowd funding platforms they are great for the long term business startup planner but ineffective for established businesses that need investment to move on a business opportunity.

What is Fixed Income Investment

So what are the benefits of fixed interest investment in addition to the benefits of capital appreciation fixed income securities provide investors with a steady stream of income generated from a portfolio balance.

Most people have done this by property investment but often find that they are investing more of their own money than

Creating a consistent cash inflow to the Investor.

One advantage of investing in fixed income securities is the peace of mind that comes from the stable portfolio balance and capital preservation by definition fixed income securities are required to repay the original amount of the Investment known as the principal balance in full at a specific date in the future or in increments spread over the duration of the investment.

Example: Principle Investment 12 months £1000

Quarterly income £100×4=£400 Return of principle investment £1000 Guaranteed Ethical Growth of funds in one year £1400

Fixed income is a type of investment in which real return rates or periodical income is received at regular intervals and at reasonable predictable levels fixed income investment can be used to diversify one’s portfolio as they pose less risky than equity and derivative investments.

Best investment plans for fixed income further the recent tumbling of the economy has bought the attention of investors from equity orientated plans to fixed income plans especially for those who are on the verge of retirement or those wanting a better return on their money than what the banks are offering. Simply put fixed income plans use regular Returns in the form of fixed income.

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