Savings VS. Investing

Jesse Howard

Differences Between Savings and Investing

Savings is portion of income not spent on consumption.

Investing is the purchase of assets with goal of increasing future income.

Why are Saving and Investing Important?

Saving and Investing

Saving provides the foundation for financial security while investing enhances wealth. Saving is essential to financial security, because without savings, an individual or households might not be able to pay for an unanticipated investing an individual or household is working towards wealth accumulation.

Financial Life Cycle

Stage 1: Saving is the basic wealth protection. A individual should be focused on building financial security.

Stage 2: Investing and the wealth accumulation, which goes beyond financial security.

Stage 3: The wealth distribution, involves the consumption of wealth.

Across the life cycle there are points where people will need to save money for wealth or financial security. the amount of time that takes depends on the household or individual.