Saving and investing both help with money, but investing is better for growing your wealth. Here’s why:
Money Grows Faster
When you save, your money sits in a bank account and grows slowly with interest.
When you invest, your money works for you by earning higher returns. For example, investing in mutual funds or shares can give you much more than a savings account.
Beats Inflation
Inflation means the prices of things go up over time.
Savings grow slowly, and inflation can make your money lose value.
Investments like stocks or mutual funds grow faster, helping you keep up with rising costs.
Helps You Achieve Goals
Saving is good for small things like buying a phone or a holiday.
Investing is better for big goals like buying a house, a car, or retirement.
Earns More Money Over Time
When you invest, your money earns returns, and those returns also earn more returns. This is called compounding. Over time, this can make a huge difference.
Creates Financial Freedom
Investing helps you build wealth, so you don’t have to rely on a job forever.
It can provide a steady income or a big amount for emergencies.
When to Save and When to Invest?
Save: For short-term needs like emergencies or small expenses.
Invest: For long-term goals and growing wealth.