Financial verbiage, in many cases, are used interchangeably to communicate an idea. However, each of these terms has a different objective, timeline and related products to implement a financial goal. An individual should first decide what their objective is.
Collect - to gather or accumulate a group of related objects, especially as a hobby.
- Hobby - an activity or interest pursued for pleasure or relaxation and not as a main occupation.
Hedge - a means of protecting oneself from financial loss.
- Inflation - is a sustained increase in the general price level of goods and services in an economy over a period of time. When the price level rises, each unit of currency buys few goods and services.
Invest - to commit money for financial return in the form of income or to appreciate in the future.
- Capital Appreciation - the difference between the purchase price (cost) and fair market value (if higher than cost) when liquidated.