Saving vs. Investing: Understanding the Key Differences - Deepstash
Saving vs. Investing: Understanding the Key Differences

Saving vs. Investing: Understanding the Key Differences


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Saving vs. Investing: Understanding the Key Differences

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Saving VS Investing

The words “saving”and “investing”are sometimes used interchangeably,but when it comes right down to it,we should be engaged in both to secure our financial future.

A shared characteristic of both saving and investing is the utmost importance that they play in our lives.If you are not doing either, the time to get started is now.This may require changes in spending, tracking,and in the utilization of your income,but it can and should be built into your plan.A general rule of thumb is saving should be short-term while investing shuld be long-term.Keeping that in mind,let’s review the differences.


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We save for purchases and emergencies. Saving money typically means it is available when we need it and it has a low risk of losing value. It is important to track your savings, putting a deadline, or timeline, and value to your goals. For example, if you are saving for your annual family vacation, you might want to target $3,000 to save in nine months to withdraw at the end of the year. You then know how much you need, how much to save monthly, and the ability to take the money out without fees to spend on that treasured vacation.


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When investing,it is important to invest wisely.You will have a better return if you begin investing early.Understanding different investment vehicles,what they are for, and how to use them is imprative to being successful.We invest for long term goals,such as our childrens college fund retirement.We use specific vehicles that allow for growth.If our children have 10-plus years before they go to college,we can invest monthly in a vehicle like an education savings account (ESA).These allow for withdrawals when your child goes to college.Longterm plans can help you successfully reach that goal.


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