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Investing vs. Saving for Wealth Growth
Both saving and investing are important methods for wealth growth. However, there is a huge disparity between these two approaches, which has a direct impact on long-term wealth. Saving is a monetary habit where money is stored in a specific place, but it does not keep pace with the inflationary rate. On the other hand, investing increases money through compounding in the long run. A successful investor always manages their portfolio properly through asset allocation. Relying solely on liquidity can never create long-term affluence.
Those who rely only on saving do not get true appreciation of money, because it faces recessionary pressure over time. But those who invest in diversification and equity can enjoy the yield of money in the long run.
Therefore, investing is more effective for long-term wealth building, where proper fiscal knowledge and speculation need to be emphasized.
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Example Sentence Translation
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Investing vs. Saving for Wealth Growth - Mask Toggle
Emoji
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Word | Meaning | Example Sentence | Synonyms | Antonyms |
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#2464
💰
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saving
ˈseɪ.vɪŋ
noun
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The practice of keeping and accumulating money for future use rather than spending it immediately.
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Regular saving habits ensure financial security. |
savings, preservation, economy
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spending, expenditure, consumption
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#2465
📈
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investing
ɪnˈvɛst.ɪŋ
verb
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The act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.
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Investing in stocks can generate long-term wealth. |
funding, financing, capitalizing
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withdrawing, liquidating, spending
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#2466
⚖️
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disparity
dɪˈspær.ə.ti
noun
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A great difference or inequality between two or more things.
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The disparity in wealth between rich and poor is increasing. |
inequality, difference, gap
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equality, similarity, balance
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#2467
💵
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monetary
ˈmʌn.ɪ.tri
adjective
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Relating to money or currency.
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The government adopted strict monetary policies to control inflation. |
financial, fiscal, economic
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non-financial, barter, non-monetary
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#2468
📊
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inflationary
ɪnˈfleɪ.ʃən.ər.i
adjective
••••••
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Characterized by or tending to cause monetary inflation.
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Excessive printing of money can lead to an inflationary crisis. |
price-rising, cost-increasing, expansionary
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deflationary, price-reducing, contractionary
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#2469
🔄
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compounding
kəmˈpaʊnd.ɪŋ
noun
••••••
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The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.
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Compounding allows investments to grow exponentially over time. |
growth, accumulation, exponential return
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simple interest, loss, depreciation
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#2470
📊
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portfolio
ˌpɔːtˈfəʊ.li.əʊ
noun
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A range of investments held by a person or organization.
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Diversifying your portfolio reduces investment risk. |
investment mix, asset collection, holdings
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single investment, disinvestment, liquidation
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#2471
📈
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asset allocation
ˈæ.sɛt ˌæl.əˈkeɪ.ʃən
noun
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An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.
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Proper asset allocation is key to financial growth. |
investment strategy, diversification, capital distribution
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concentrated investment, poor diversification, risky allocation
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#2472
💧
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liquidity
lɪˈkwɪd.ə.ti
noun
••••••
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The availability of liquid assets to a market or company; the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price.
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High liquidity allows businesses to meet short-term obligations. |
cash flow, marketability, convertibility
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illiquidity, fixed assets, inaccessibility
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#2473
💎
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affluence
ˈæf.lu.əns
noun
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The state of having a great deal of money; wealth.
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His business success led to great affluence. |
wealth, prosperity, abundance
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poverty, scarcity, destitution
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#2474
📈
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appreciation
əˌpriː.ʃiˈeɪ.ʃən
noun
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An increase in the value of an asset over time.
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Real estate properties often experience appreciation over time. |
increase, growth, recognition
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depreciation, devaluation, decline
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#2475
📉
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recessionary
rɪˈsɛʃ.ən.er.i
adjective
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Relating to or characterized by economic recession.
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Governments introduce policies to counter recessionary effects. |
economic decline, downturn, slowdown
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expansionary, growth-oriented, prosperous
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#2476
🔀
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diversification
daɪˌvɜː.sɪ.fɪˈkeɪ.ʃən
noun
••••••
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The practice of spreading investments across different assets to reduce risk.
••••••
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Investment diversification reduces financial risk. |
expansion, variety, differentiation
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specialization, uniformity, concentration
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#2477
📊
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equity
ˈɛk.wɪ.ti
noun
••••••
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The value of shares issued by a company; ownership interest in a company.
••••••
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He invested in company equity for long-term gains. |
ownership, stake, shareholding
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debt, liability, unequal distribution
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#2478
💰
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yield
jiːld
noun/verb
••••••
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The income return on an investment, such as the interest or dividends received.
••••••
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Bonds with higher yield offer better returns. |
return, profit, earnings
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loss, decline, deficit
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#2479
🏛️
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fiscal
ˈfɪs.kəl
adjective
••••••
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Relating to government revenue, especially taxes.
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The government introduced new fiscal policies to boost the economy. |
financial, monetary, budgetary
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non-financial, unbudgeted, non-monetary
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#2480
🎲
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speculation
ˌspɛk.jʊˈleɪ.ʃən
noun
••••••
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Investment in stocks, property, or other ventures in the hope of gain but with the risk of loss.
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Stock market speculation can lead to high volatility. |
risk-taking, prediction, guesswork
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certainty, stability, assurance
••••••
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