What Is The Difference Between Saving And Investing

Saving is the act of setting aside money in a safe place for future use. Savings can be kept in cash or in other forms such as stocks, bonds, certificates of deposits, and mutual funds. The main purpose of saving is to preserve capital and ensure that funds are available for future use.

Investing is the act of putting money into a financial asset, such as stocks, bonds, or real estate, with the expectation of earning a return on the investment. The main purpose of investing is to generate a return that is greater than what would be obtained through saving alone. Investing often involves taking on some risk in order to potentially earn higher returns.

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