Saving and Investment

Most of the time, I pen out the ideas running randomly in my brain. This time it’s different. This post is dedicated to all my blog readers. I ask all of you to tell me the following.

Are Saving and investing same things?

Are these synonyms to each other?

If these are different, then do tell me what is saving and what is investing?

What ‘ll you define as saving and what ‘ll you define as investing.

Please feel free to pour your thoughts in the comments section below.

28 Responses to Saving and Investment

  1. Meena shivram says:

    Investment is going one step ahead of saving. You make your money work for you in the investment to meet your goals. Savings is whatever money is left after you meet your expenses. Merely saving money is not enough if you let it lie at home or in your SB account. By investing it in different instruments in debt and equity based on the desired asset allocation your money works for you to beat inflation and meet your goals like retirement, children’s education, marriage etc

  2. virenblogs says:

    Saving is LIC, investing is MF
    Saving is normal SB account, investing is SB account with auto-sweep option
    @Ashal, your comment is awaited what exactly is the difference 🙂

  3. marina subrahmanyeswara rao says:

    For my take on this plz watch this show featuring me :

  4. Vignesh Baskaran says:

    Are Saving and investing same things?

    — Not same. Process of investing will lead us to save for our Future goals.

    — Mere Saving after our expense will make us work (instead of making money work) till out end of the life for all our goals.

    Are these synonyms to each other?

    —Even if it seems to be same. It is not. Above explanation given

    If these are different, then do tell me what is saving and what is investing?

    —–Why mere saving wont help us to reach our goals easily is because of the time value of money. Infaltion keeps increasing cost of all materials day by day. So to earn real returns in the Long term we may need to invest from the start of the career.

    What ‘ll you define as saving and what ‘ll you define as investing.

    Ans. Given for the first question.

    Everything learnt from Ashal and other experts.

    In case of any wrong understanding pls point out!

  5. Lalit says:

    1. Both are different.
    2. To my understanding, saving means keeping some of your income aside for future use i.e. deferring to use it; while investment is a more focused sort of ‘next step’ to savings where in saved amount is earmarked for a specific purpose, for a specific time-frame to achieve a specific pee-determined financial goal.

    Don’t know how does it sound 🙂

  6. Syamantak says:

    Saving is to keep aside something by not utilizing its full value(mostly used for money). Savings always lead to depreciation of its value.

    Whereas investing is to utilize money in a pre defined way and a growth in the ‘value’ (read purchasing power) is expected out of the utilization process. Investing leads to an appreciation if the right path is chosen.

    these two are never synonyms but are related in my views. an investment is a process which can be initiated only after there exists a previously saved amount.

  7. Chandra says:

    I think savings is putting aside some of your earnings for any future use / rainy days, with some or no appreciation but is safe. You are sure that it is there when you need it. The risk of depreciation of its value is less. Eg bank deposits
    Whereas investment is done expecting appreciation in value in future and you can even borrow money to invest. You only hope that the appreciation takes care of the cost of borrowing. You take risks in investing. Eg real estate, shares, gold etc
    We need both savings and investment.
    Do I sound correct?

  8. bharat shah says:

    i like to add to Ayush’s comments: to beat inflation and tax .of course , it is not my own idea , but learnt.

  9. Rajiv Ahuja says:

    I would like to be educated. Please include my e-mail in your blog list. My e-mail is

  10. NATARAJAN says:

    Interesting topic again. I understand that savings are made out of your earnings. such savings are made to grow is called investment. In a way, savings cannot be kept ideal and make it multiple.

  11. Mahendra Nayak says:

    Saving & investments are not synonyms. But saving & investment complement each other. In simple words surplus left after monthly expense is saving. Investment should help in generating additional cash flow intern increasing your saving. In short there can’t be investment without saving.

  12. S. N. Jain says:

    Saving is only a prelude to investing.

  13. Kartik says:

    For me, liquid investments ( those that do not have lock-in periods) are savings since we let the money grow but also have it for emergency purpose.
    Pure savings ( like piggy bank, savings bank account money etc ) are stagnated and not that useful as they depreciate over time w.r.t inflation.

  14. AyushP306 says:

    No definitely not. Savings and Investments are not the synonyms of each other. I feel Savings is a kind of stagnated money which depreciate over time because of inflation. And investing is something to make the money work itself so that it can grow enough to beat inflation to keep its real value over time.

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