Savings VS Investing
Dannah Seaton
Savings
- Portion of income not spent on consumption
- Used to pay for emergencies and large purchases
- More liquid
- Provides the foundation for financial security
Investing
- The purchase of assets with the goal of increasing future income
- Used to pay for long-term goals, such as retirement and higher education
- Less liquid
- Helps build wealth
Reasons to develop a savings plan
- Unlimited deposits (including transfers into the account)
- Auto Savings tool that allows you to establish a recurring savings routine