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Home | Investor Education Articles | Savings vs Investments

Savings vs Investments

Our introduction to savings is through the piggy bank. The money saved in the piggy bank bought chocolates and toys. We learn about the importance of saving money very early. However, as children, we do not get any gadget or a toy that teaches us the concept of investment or inflation.



What is saving

When income from various resources, like salary, interest income or rent from a house property, exceeds a person’s expenses, the balance money is the saving. In simple terms, your income inflow is greater than your outflow. Savings are an imperative as they insure your financial stability in the future. It is also the first step in the overall financial planning process. Unless there is some sort of saving of the income it is not possible to invest and generate returns for you.

How inflation eats into savings

What is investment