Difference between Saving and Investing


Verified member
There are many similarities between the terms saving and investing, so it will be difficult to distinguish between saving and investing.
Both investing and saving can be done on a regular basis, for example monthly set aside from income. both can also be for short-term or long-term goals. We can also cash in both when we need funds. So what is the difference between saving and investing? Basically the most striking difference between saving and investing is the level of liquidity, saving is more liquid than investment, because savings are in the form of fiat money while investment will be in the form of commodity goods such as property, stocks, cryptocurrencies, gold, bonds, bank deposits etc. Another difference between saving and investing is in the risk and potential return/profit that will be obtained. The risk of saving is smaller than investment, this does not mean that savings are safe without risk, there is a big risk of saving if there is high inflation then the value of fiat money is worthless (rare), the risk of investment will occur if the price of the goods we invest in falls in price. dratis so that we will lose (capital loss). Return or yield, the benefit of saving will be smaller than investment. Actually, novice investors need to fear the risk of investing, because ingenuity in choosing the right type of investment such as stocks, gold, bonds, cryptocurrencies, etc. will be very profitable in the future, but of course we need patience.


VIP Contributor
Investment is the best because of the potential ability of making you to be rich in the future most especially if you are investing in cryptocurrency ,there are some investment that may not give you the potential of being rich that is it depends on the type of investment you are doing, investment on treasury bill can only be able to give you a little percentage profit.

Good luck

Valued Contributor
Saving is the act of keeping your money in a safe place probably a bank so that you will not spend it and such keeping does not give any interest,you will rather be charged for helping you secure your fund while investment is a long or short term business that gives you an interest within a stipulated period of time

Syeda Sayra

Active member
Huuhh! An interesting topic .. Well I think Investing is good enough from saving your income... Your savings will be all end once you get in need to spend it... While investing an amount anywhere will give you more spendings than your saving amount time to time...


VIP Contributor
There is no doubt that there are huge differences between saving and investment. The two are however interlocking based on the people that do it. You cannot start any investment without saving. And when you invest, you must save. Definitely, the only difference between the two is just the motive.


VIP Contributor
Saving means depositing your money in a bank account that may or may not give you returns, or keeping your money or other liquid assets in a locker. Saving does not give you profits, it only protects your money from being spent. However, investing means your money will yield profits. You will not only get a principal return but also profits on your investment. Interestingly, investing will not always give you profits, it may also turn into a loss. Saving is the first step of investment. You save money so that you will be able to invest in something profitable later.