Savings Vs. Investing

By Layne Woodruff


The portion of income not spent on consumption. Also are liquid assets such as cash, or something that is easily accessible. Savings, most of the time, are used for emergency expenses, or vacation money. Savings ARE NOT long term investments, because you want to be able to pull out savings at any time.


Investments are assets that will increase your FUTURE income. Investments are a LONG TERM plan, you don't want to touch the cash after its been invested, you want the amount to build up. Investments are used for paying for more expensive things such as a house or college education or even retirement. An example of a investment is the stock market, you make an investment in a company, and wait until the company does well.