There is a big difference between saving and investing. Knowing this would help you become financially secure and independent. When you save, you set aside some amount of money consciously. Saving is basically safekeeping your money for the intention of using it for some future purpose. Separate your savings from your revolving fund or the money that you use for your daily, weekly, or monthly budget. You need to put some amount of money in your savings account for specific purposes such as your emergency fund, your provision for your child’s college fund, or any other future spending you are planning for.
Investing is growing your money. This will give you more money to spend for your bigger ticket expenses in the future – that Carribean cruise or world tour perhaps for you and your hubby to enjoy on your 25thwedding anniversary? More importantly, you have to leave a substantial amount of money for you to retire on. Time is your best friend when you are investing. Since you do not need your money right away, you can take your time in evaluating your investment options to take advantage of better yielding instruments. Be wise in investing your money so that you can have a hefty nest egg to hatch later on.