Investment
Investment
Invest
An investment is an expenditure intended to increase the wealth of the person making it. An investment is an immediate expenditure whose objective is to obtain a positive effect that can be quantified in the long term. A company invests : to increase its productivity (investing in additional machine tools, etc.) to win new customers or improve its brand image (investing in a communication campaign, etc.) to save time (investing in task automation software, etc.) to reduce costs in the long term, i.e. to increase profits (investing in a tool to monitor energy consumption, for example, to find out where and how to make savings, etc.). Investment may also be necessary to maintain turnover (renewing obsolete equipment) or to modernise equipment: more recent and more efficient or more ecological...
In a company, an investment is used to increase productivity (investing in additional or more efficient machines), to save time (investing in task automation software)... Before committing to this type of expenditure, companies anticipate the return on investment with the help of the ROI (Return Of Invest) ratio: ROI = [(gain of the investment - cost of the investment) / cost of the investment ] x 100
Saving
Savings are the part of the money that is not consumed and that is put aside. The main forms of savings: "Liquid" savings: This type of savings makes money available immediately. These are resources that are available and used for daily living. Examples include current accounts, youth passbooks and Livret A savings accounts. Financial savings: Financial savings allow you to grow your capital and benefit from capital gains: it is a profitable investment.
Financial savings can be money placed in the bank, financial products for real estate investment, which can be financed by the individual him/herself but also through his/her employer (company).
