Savings and Investment

Savings refer to the portion of income that individuals or households set aside rather than spend immediately, often stored in bank accounts or cash. Investment involves using some of that saved money to purchase assets like stocks, bonds, or property, with the goal of generating future returns or income. While savings provide security and liquidity, investments aim to grow wealth over time. Both are essential for financial stability: savings cover immediate needs and emergencies, while investments help build wealth for the future. Effective financial planning balances both to meet personal goals and manage risks.