Full transcript
0:00let's dive into the difference between
0:01saving and investing
0:03saving is when you gradually set aside
0:05funds maybe a portion of your paycheck
0:07in a safe place like a savings account
0:10or a money market account
0:12these accounts allow you to store cash
0:14that can be easily accessible and have
0:16little risk of loss of value
0:18saving is often intended to reach
0:20shorter term financial goals like
0:22building an emergency fund or planning
0:24for a large upcoming expense
0:26investing on the other hand is when you
0:29put money in a financial asset that
0:31carries risk but also provides return
0:33opportunity
0:35those financial assets may come in the
0:37form of stocks bonds mutual funds or
0:40exchange traded funds the goal of
0:43investing is to grow your wealth over
0:44time by taking advantage of capital
0:46appreciation and compounding returns
0:49since the intention is to leave the
0:51money invested for longer periods
0:53investing is typically used to reach
0:55longer term goals like Building Wealth
0:57for retirement or saving for a child's
1:00college education
1:01so is it better to save or invest
1:04generally saving and investing go hand
1:06in hand to work toward Financial
1:08Independence saving may make more sense
1:11if you're building your emergency fund
1:14you need money to be available in less
1:16than one year or you want to be able to
1:20access the cash as quickly as possible
1:22investing may make more sense if you
1:25don't have any High interest debt you're
1:27comfortable leaving the money untouched
1:29for more than one to two years or you're
1:32contributing to a retirement account in
1:35summary saving is about setting aside
1:37money for short-term goals and
1:39emergencies well investing is about
1:41putting money into assets that will
1:43hopefully grow in value over time
1:45both saving and investing are important
1:48for achieving financial goals and
1:49Building Wealth and the best approach
1:51will depend on your personal financial
1:53situation goals and risk tolerance
1:58foreign