What’s the difference between saving and investing?

Are you a fresher at work?

Or have you just been promoted?

Or are you a veteran with several years of work experience?

Whoever you are, saving and investing are the two words you must have heard of. Well, if you’ve wondered about the difference and similarities between the two, then you’re in the right place. 

What both saving and investing have in common is the accumulation of wealth. The simple act of guarding money against spending is what saving is about. But using that money with the intent of multiplying it, is investing. 

1. When we say multiply, one of the ways can be by applying the power of compounding to it. It is about taking 2 and turning it into 4; taking 4 and turning it into 8 and so on & so forth. Even if you’re not able to compound the value of your investment, by taking the right financial decisions, you can earn good interest on the money saved. There are several forms of investment like stocks, shares, chit funds, crypto, FDs, RDs and many more. 

2. Saving/investing from a young age is advisable. As, apart from understanding the value of money and the sense of maturity it instills in terms of taking financial decisions, it develops a sense of character. It will lay the foundation for leading a financially stable and secure life. 

3. Saving is great in terms of safety. Instead of making volatile investments, if you just save, then there is no risk. The money saved will remain safe forever. But why stop there, when you can invest in a safe and sound form of flexible investment, where you can easily earn 10% interest annually?

Yes, we’re talking about saving in one of the myPaisaa chit plans. Interest? Click here to explore our exciting chit plan!