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Money is but a symbol to which we have given a value. It represents the value of goods and services. Before money was invented, products and services were exchanged directly. This exchange was called barter. You sell a good to a person who has a good that you need. This means of transaction was cumbersome. Money became the medium through which business and trade was transacted. When you sell a good you get money in return with which you can buy what you need. It made trade and exchange of products much easier. Money underwent change in its forms through history, from coins made of precious metals such as gold, silver and copper to bank notes or currency. Now digital money or virtual currency is also being used as a medium of transactions.

Saving is closely related to investment. Investment is made normally with what one has saved. Saving is the remaining disposable income or money one has after spending it on consumption. This saving could be invested to create future income. It will be the investor’s choice as to where the investment is to be made, how much and when. This will depend on the understanding of the investor of the investment opportunities that exist. The investment opportunities obviously will have to take into consideration whether there would be earnings in the future and what are the risks involved. The investment could be in real assets for the production of goods and services. The investment could also be in financial assets.