InvestorQ : What is saving, is it the same as investing?
Mahil Khan made post

What is saving, is it the same as investing?

Anjana Aiyar answered.
3 years ago
That is where it all starts. You first need to understand what is saving! The normal misconception is that putting money in your bank account is an example of investment but it is only saving. Putting money in your savings account is not investing. Saving is what you are left with after spending. If your income is Rs.25,000 and your monthly expenses are Rs.15,000, then you can save Rs.10,000 per month. But that is not investing. That is saving. Your money is still idle. A saving bank account pays you around 4% interest each year. That too on the minimum account balance between 1st and 10th is what it pays. That is all!
Investing is not about putting money in your savings account, FD or even in a money market mutual fund. These are all idle money and idle money does not give you good returns (interest). These are places to keep your money safe with liquidity. Investing is about growing your money steadily over a period of time. Why do we keep savings in the bank? You have an emergency. What do you do? That is why you keep bank savings. You may have medical emergencies. If you get sick at late night, you will need money. There could be children and old people in the house. You may have to suddenly travel. Savings are just for that. You don’t become wealthy by just saving.