SAVING VS INVESTING
Many new
investors don't understand that saving money and investing money are entirely
different things. They have different purposes and play different roles in your
financial strategy and your balance sheet. Making sure you are clear on this
fundamental concept before you begin your journey to building wealth and
finding financial independence is vital because it can save you from a lot
of heartache and stress.
Saving and investing often
are used interchangeably, but there is a difference. Saving is
setting aside money you don't spend now for emergencies or for a future
purchase. Investing is buying assets such as stocks, bonds,
mutual funds or real estate with the expectation that your investment will
make money for you.