I am a little bit confused. I dont know very much about economics or money at all. I am an artist so I dont really think very often about those things. I just get my money and put it in the bank. My friends started a few days ago a discussion about investments and I was sitting in a silence. I didnt understand basic things. For example difference between savings and investments.
It is not very difficult to understand the difference. Your money in the bank is probably in saving account. You use it to keep your money and to withdraw it for buying stuff you need. Savings are money that are put away for short or medium period of time. That money is easily obtained. You have some interest rate to it but you are not able to earn some real profit from it. On the other hand when you invest you put your money for the longer period of time and you expect some return from it. It usually have a greater risk to it.
