Which out of ‘Saving’ and ‘Investing’ is Better and Why?


Each one of us plans for the future. Throughout our lives, we keep taking steps to overcome everyday limitations and ensuring a good standard of living. To meet our present and future goals, most of us take the help of smart financial techniques falling under two categories, namely, saving and investment. However, many use these two terms interchangeably, which is not entirely appropriate.

‘Saving’ and ‘Investing’ are different, and both have distinct pros and cons. And to help you choose the most beneficial one, we’ve come up with this post, which describes everything you need to know about these two concepts.

Unsplash | Saving and Investing are two different concepts with their distinctive pros and cons

Let’s get started.


Saving is collecting and accumulating money for short-term uses or preparation for investment (raising a proper capital). Usually, saved up money isn’t currently needed; it’s the extra amount gained by dispensing with life’s luxuries. It’s the first step towards a relaxed and comfortable living.

Here are a few saving ideas you can use in everyday life:

  • Use free communication methods instead of paid phone calls and SMS services. Free methods could include social media applications such as WhatsApp, Skype, Google Hangouts, Facebook Messenger, etc.
  • Engage in smart buying, which includes budgeting, online shopping, and opting for deals and discounts.
  • Make use of things that are readily available instead of buying new stuff. For example, you don’t need to purchase a television if you own a computer and an Internet subscription. Everything you’d want to watch would be available online anyway.
Unsplash | Saving includes collecting money for short term uses


Investment is also a financial priority, but one that gives returns in the long run. It indicates the desire to increase savings and grow them over time.

Have a look at some interesting investment options:

  • You could invest in stocks. Stocks are a great way of putting your money away at a safe place while also buying ownership in a publicly-traded company.
  • Mutual Funds and Bonds are other beneficial investment options. You could also consider buying property as a long-term investment.
  • Some people prefer investing in retirement plans (workplace retirement plans or individual retirement plans).
Unsplash | Investing stems from the desire to increase savings and grow them over time

Should we stick to only one of them?

If someone tells you that saving money can mean growing your wealth, it’s not entirely correct. You can’t raise millions of dollars just by saving. Wealth is developed only by investing wisely, which is an essential step after you save money. So, think of them as twins! Each practice has its own characters, but they can’t be separated.

To wrap it up

We hope our pointers above can help you dominate your expenses and enjoy true financial freedom.

Understanding the difference between saving and investing is crucial in understanding what it means to put away earned money for some time, and what it means to grow what you already have. Both concepts are closely related, but considering them as synonymous would be incorrect.

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