Saving Money vs Investing Money


What is Saving Money?

It is process to keep hard cash aside, extremely safe and highly liquid. You can easily access cash and sell without any delay

What is Investing Money?

It is a process to use your money, to buy assets that can generate earnings over a period of time and asset can also be sold to generate profits.

How Much to Save versus How Much to Invest

Building a financial house! Savings has to be the foundation of your house. Saving money always come before investing money. Savings will create the road map for you investment proceeds. Investments are done to make you wealthier. In the time of crisis when you need cash, selling out investments is not likely the best option.  Savings can be a better way to tackle such situations.

Savings Program:

The Key to Saving Money is to Pay Yourself First 

  • The general rule of saving is to save as equivalent to your personal expenses, such as loan payments, bills, food expenses and clothing expenses.
  • Any specific purpose which requires large amount that should be savings driven and not investment driven. For example purchasing house

If you follow these two programs then only one can move forward to investing money.






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