• Even with the bad news from Greece, the Euro is stronger today. #
• Greece Requests EU-IMF Rescue in Euro’s Biggest Test (Update3) – Bloomberg.com http://bit.ly/bfR0iz #

Many individuals use the terms savings and investing interchangeably, they are not the same thing. Saving is when you put your capital straight into a low risk low risk investment like a savings account or a high interest capital market account, where there is very little risk to the funds you have to invest.

Investing is when you’re placing the money you have to invest into an asset which may do up or down in value, for return higher than a high interest savings account, in return for taking some risks.

Investing is when you are using your savings to decide on and purchase an asset that you anticipate to increase in value in the medium to longer term, enhancing your capital value. This asset may go up or down in value, but will generate a return higher than that of a savings account, in return for taking some risks. Investment decisions are normally based on basic principles of that asset that are investing in.

Putting income into a high interest account to buy a car is saving your money, whereas putting your currency into a unit trust or a mutual fund to generate a nest egg sometime in the future is investing. When you have cash to invest, you should normally always seek some professional financial advice before you make any big decisions.

Investing vs Trading

What is the difference between investing and trading? Sometimes they use these terms interchangeably but they do mean completely different things. If you are a serious about controlling your very own cash and the risks associated with it, you require to understand the difference between these two terms.

With trading, the biggest difference is the time frame. Traders are typically very short term investors, at times buying and selling their positions on a daily basis and sometimes more than a few times in each day. They will generally make investment selections based on charts and the trends they are predicting and they are sometimes called chartists. Day traders also try to time the market, buying low and trying to sell high, quickly and as often as possible.

How to make a lifetime of savings – how small changes can have a big impact on your expenses.

Households can save more than $15,000 in a lifetime by making small adjustments to the way they run their home.

Annual electricity bills can be reduced by $100 a year by switching 10 ordinary light bulbs for their energy efficient equivalents:

·         By turning of each appliance which is on standby can save $100 a year.

·         Turning the heating down by one degree could save over $10,000 in a lifetime.

·         Not heating the house when no one is in can save a further $8,000.

·         Optimise the use of your electrical appliances like when boiling the kettle, just boil, enough for what you need.

·         Reduce the wastage of food by eating all that is bought will save up to $500 a year. It is estimated that households throw away 30% of the food that they buy.

Another feel good benefit of making these changes is that it will save about 209 tons of carbon dioxide which is equal to travelling over 115,000 miles by car. So by making these small changes, you will not only save money but also reduce your carbon footprint at the same time.