Your investment saving Information
Many people talk of themselves as being investors. When I hear someone mentioning that he or she is “investing” some money I always ask them: “Are you investing or trading?” I usually get people confused with this little question. The fact is: Most people don’t know what investing is and they cannot tell the difference between investing and saving on one hand and trading and gambling on the other hand.
So let’s look at the four most common types of what you can do with your money if you don’t spend it:
Saving
Saving is about preserving what you have – without the intention of gaining anything. Saving money means you put money away in a safe place, so you can use it later to either invest it, spend it or do whatever you like with it. It does not mean exposing your assets to any type of risk at all. Saving could be in the form of a savings account, cash, gold or whatever does not put your money at risk. An investment fund or a 401K is NOT saving money. Investment funds – like the name suggests is investing.
Investing
Investing has the idea of long term natural growth associated with it. Investing money means giving your money away with a certain amount of risk and the chance for a certain profit. Often the exact amount of the profit is not known in advance. So is the risk that you might lose your money or a part of it. In general an investment is a commitment to convert liquid assets into more illiquid types of assets for a minimum of 2 years or more. Yes, investing is a long-term commitment and something that has made many people unspeakably rich. Investing is not for nervous or paranoid people. It is for the smart and bold. If you are paranoid, you should be saving instead of investing. If you are looking to make quick cash you should be trading.
Trading
Trading is more similar to dealing in any particular goods. There game is buying low and selling high – whether you are dealing in textiles, watches or stocks. The time horizon for a trader is short term. A trade can be from a few minutes to a few months. It doesn’t really matter what the time frame is. What matters is your intention and mind set. If you strive to buy low and sell high, you are a trader – not an investor.
Don’t get excited over your trades. If you a seeking pleasure and you find that trading is actually fun and giving you a certain kick, then you are not trading – you are gambling
There are different intentions associated with different types of actions. They could be described as below:
Mindset: Preserving
Action: Saving
Predictability: High
Risk: Low
Potential Reward: Safety
Mindset: Growing
Action: Investing
Predictability: moderate
Risk: moderate
Potential Reward: long-term appreciation
Mindset: Making money
Action: trading
Predictability: low
Risk: high
Potential Reward: high return
Mindset: Excitement
Action: gambling
Predictability: very low
Risk: very high
Potential Reward: loss
When you go from Saving down to gambling with each step predictability is decreasing and risk is increasing.
So when you think about investing your money, think of your goal first – then decide what your strategy should be.
Steve Brzinski writes for several magazines and e-zines. Visit his stock market investment site at http://www.stockmarket-investor.com/.
Article Source:
ezinearticles.comLike the name implies, solar hot water heaters use energy from the sun to heat water. Initially, the cost of installing a solar water heater will be high, but it is a money saving investment in the long term
How to install heating solar systems?
It is recommended to consult a solar heating professional before buying these water heaters. He will inform you, what size of heater will be suitable for your family. These solar water heaters can be installed with the help of the professionals. Choose suitable place for their installation. Make sure that these solar water panels are placed facing the sun.
The latest geothermal heat pumps are among the most efficient and comfortable energy saving heating and energy saving cooling technologies currently available for homes and other buildings. These ground-source heat pumps use the natural heat storage capacity of the earth or ground water to provide energy efficient heating and cooling.
Types of Solar Water Heaters.
Solar hot water systems can be either active or passive. Active solar water heaters require an air source heat pump to circulate the water while passive systems do not. An active system is one where the exchange fluid is actively pumped from the storage tank through the solar hot water collectors and back into the tank. In case of a passive solar water heater, the storage tank will always be on the roof.
Benefits of these solar water heaters?
1. They are environment friendly and do not cause any pollution.
2. They are energy efficient and reduce the electricity expenditure.
3. They are a fantastic way to save fossil fuels.
4. A solar water heater is a long-term investment that will save your money. These are the most successful energy saving heating and energy saving cooling appliances.
5. Solar heating systems require very low maintenance through out the year.
Solar 7 specialise in supplying and installing a range of energy saving products that include
solar hot water heaters collectors , thermal hot water systems,
air source ground source heat pumps which provide
energy saving heating cooling by utilising Heat Pump technology.
Article author: Naval Sharma
For people about to embark on the savings path, the news from the UK's Chancellor of the Exchequer that the annual Individual Savings Account (ISA) allowance is to be raised from its present level of seven thousand two hundred pounds to ten thousand two hundred pounds is extremely welcome indeed and will probably persuade a considerable number of prospective consumers to start an ISA as the first move in commencing to save for the future. This massive hike in the maximum limit that people are permitted to invest annually is a clear indicator that the UK Government wants citizens to save using this means of investment.
For those not familiar with ISA's (Individual Savings Accounts), a brief recap may be beneficial. ISA's are now over ten years old and even before the statement from Alistair Darling they had been considered by many as a secure and safe form of tax free saving. For anyone looking at investment possibilities the ISA is now sure to be an even more attractive proposition. Since they were introduced in 1999, the advantages that are on offer with Individual Savings Accounts have been extremely tempting. No income tax is payable when you invest in an ISA. Add to that the fact that no capital gains are payable on an ISA and the advantages of this means of saving become even more attractive. You will discover that ISA's are available from an extensive variety of sources, some of which are online while others can be found on the high street. These types of investments are at the safest end of the spectrum - they are relatively simple as well. A taxpayer who is over the age of sixteen can get an
isa savings account and they may do so with as low an investment as ten pounds. This illustrates a important point in the Governments thinking behind the setting up of ISA's - they are intended to encourage more citizens who have never saved before to start making provision for times ahead. Another important point for ISA's is their versatility. You can select how you want to invest. There are varied ways that are available when investing in an ISA ranging from cash ISA's to stocks and shares ISA's. You can simply select the one that you consider to be right for your circumstances. Many people see investing in a cash ISA as a more secure sort of investment because the returns are likely to be fixed and should be reliable. On the other hand stocks and shares ISA's are considered likely to yield more but the snag is that a far higher element of risk attaches to this form of investment. As the volatility of the stock market has indicated over recent months any investment in stocks and shares carries with it an element of risk and therefore the potential tax free returns are much less reliable. The position at the moment is that the maximum amount that you may invest into a combination of ISA investments is ten thousand and two hundred pounds and the maximum that may be invested into a cash ISA is five thousand one hundred pounds. For consumers whether new to investing or not, ISA's are a strong and versatile type of saving and should not be discounted when choosing how to invest.
Article author: Richard Robertson
