Many people use the terms saving and investing interchangeably because they go hand in hand to ensure financial stability.
But saving and investing have many differences that you should know when planning for your financial future
In general, saving provides a safety net for unexpected expenses and short-term spending goals, while investing is a strategy to help build long-term wealth.
Being aware of these differences can help you prepare the best financial foundation for yourself and your family.
When You Should Choose to Save?
Saving and investing is not an either/or proposition. Generally, saving and investing go hand in hand to ensure financial stability.
When You Should Choose to Save?
However, certain scenarios make one strategy better than the other.
Building up emergency savings is one of the first things to do before you start investing.
An emergency fund would ideally help you following an unexpected financial event, like paying a hefty medical bill or covering expenses if you were to lose your job.