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Investment or saving?

Investment or saving? Topic: Housing case studies
July 16, 2019 / By Dorothea
Question: Is paying $300000 to build a house an investment or saving? Explain on what terms it can be considered a saving/investment.
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Best Answers: Investment or saving?

Cath Cath | 6 days ago
At the outset, define economics as study of nature, composition, properties, laws and classification of wealth. Now understand whether investment and savings are wealth? If you are out to classify savings and investments where would you classify these forms of wealth? Both savings and investments are measured in money. Therfore basically both belong to same major class of wealth. I wish to classify wealth in two broad classes: Wants comprising of goods and services and means comprising of money and money related forms of wealth. Both savings and investment are means since they are measured in units of money. I classify means further into present means and future means. When means are more than wants, savings results. This savings can be changed to future means by purchasing houses as in the above case or can be deposited in a bank as fixed deposit etc. According to Law of Conservation, this wealth can be changed to other forms of wealth. Investment is a future means. Savings first gets changed to liquidity again a present means and this liquidity gets changed to investment. In the absence of any detailed study in this branch of classifying wealth and without any public consensus, I can not say any further.
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Annabelle Annabelle
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