If you have started earning recently, then you might be confused about saving or investing. Although Saving vs investing could be a point of confusion for you but setting aside the money from your earnings should never be a doubtful activity. You need to create a habit of keeping money aside either for investing or for saving. Which of these should you choose depends upon your risk-taking ability and your expectations from the future. In this article, we are highlighting saving vs. investing to help you make this decision in a better way.

Saving vs investing

Saving vs investing decisions could be touch. On one hand, you can see the returns from investing whereas on the other hand, the liquidity factor in saving attracts you. so, what should be the right approach? There is actually no right or wrong approach. The only thing that you need to consider here for decision-making is your priorities. Here is how your priorities can impact on decision that you make.

Risk Taking:

If you are risk averse, then investing is not an option for you. this is because investing often comes with a risk. The degree of risk can vary depending upon the particular option you choose but it could definitely involve risk. But in case, you can take some risk with your money, then going for investing option could generate benefits for you.


Savings or investment is done with an aim in mind. If you just want money available for emergency situations or a holiday trip, then saving is the option that you must choose. Conversely, if you want to earn more money, then you’ll have to invest your money in a business or mutual funds because it will provide you returns on investment and you’ll be able to earn more money than you have individually invested.


The liquidity of the money you have saved is high as compared to the money you have invested. Whether you have invested in a mutual fund or a new business, you’ll have to commit your money for a particular time period in order to get earnings. However, in case of saving, you can choose a liquid fund, so that you would get your money back whenever you’ll require it; without wasting any time in recovering it or losing the original value of the investment to get it back. This actually fits the definition of investment as well. liquidity asset is something that you can get back instantly in the form of cash without losing much of the value of the asset under consideration.


Whether it is saving or investing, you need to set aside a specific amount of money from your earnings. However, the mode in which you set this money aside would be the real difference in both the ways. In case of investing, you would invest in stock, buy assets like gold or property, or can even contribute to a mutual fund. Each of these modes would require you to keep this money in the non-cash for some time. In the opposite case, you can simply keep your money in a bank account that allows withdrawing money anytime. Moreover, you don’t have to get it converted to any other form, cash-form would be sufficient for saving.

Amount of Return:

As the purpose of investing money is to earn more money, so the modes in it can be invested allow you to earn high return. However, the actual return is dependent on the risk that you are willing to take. So, higher risks yield higher returns on investment. In case of savings, neither the purpose is to generate return nor does the mode of saving allows in most cases, so you wither get no or minimal returns on the savings.

With all these characteristics at your disposal, you’ll be in a better situation to make decision about the saving vs investing dilemma. Once you have made this decision, then you would be interesting in the ways through which you can save or invest money, right? So, let’s have a look on both the scenarios.

How to save?

If you have chosen to save, then you must be putting aside a specific amount from your income for this purpose. You can definitely argue that keeping that money aside is not an easy job. We do agree on that and this is why we have discussed some ways regarding how to save money in this article. You can visit this article and try adopting some of the techniques and habits to indulge yourself in saving money.

Modes to save:

Now the question is what techniques you can adopt to ensure that you are saving for emergency or a holiday trip. Then, here are some of the modes that you can adopt:

Open a savings account with your bank:

Nowadays, the banks provide you with a number of accounts to choose from. So, you can choose the account type where you can deposit money very month and can withdraw them when you require. Such an account will help you keep your money safe and highly liquid. In some cases, you can even expect to get a minimal interest on this amount as well. so, you can simply grab this wonderful offer.

Get a Liquid Fund Mutual Accounts:

In order to trigger the saving habits, some of the mutual funds also offer the liquid fund mutual accounts. So, you can keep your money in an account.

How to invest?

If you are willing to invest, then there are a number of options at your hand. Ranging from low risk to high-risk opportunities, the amount of return varies with the option you choose. Moreover, the time frame for which you invest your money also determines your return. So, such a decision must be made wisely.

Modes to invest:

Here are some of the modes that you can choose for the investment purpose:

Buy Gold:

One of the simplest options that you have for investing your money is to buy gold. Gold is one of the valuable assets that have shown improvement in its value over time. Keeping your money in the form of gold ensures that you won’t have to face the devaluation effect of the currency. Similarly, you can earn profit on the original investment if you’ll choose the right time to sell it.

Invest in Real Estate:

Another investing option that you have is to invest in real estate industry. although this mode can give you increasing returns but the initial investment that you would require in the real estate sector would be quite high.

Share Investment:

You can invest in some companies as well by buying their shares. Earning in this form can acquire the shape of dividend and capital gains.

These are a few investment modes that you can opt for. Apart from this crowdfunding and angel investment is also included in the list of investment. Choosing the right one depends on the amount of investment and your risk taking ability. However, we advise you that you must make a rational decision whether it is in saving or investing the money.