What’s the difference between saving and investing?
Saving Saving is necessary because its ability to stabilize your money is remarkable. Savings should be boring. It’s best kept in money market accounts, savings accounts, or even plain old cookie jars. That’s because the money you put into savings isn’t meant to stay there long-term. It is the money you plan to use for something within the next 5 years. Money you plan to use in the near future doesn’t need to be subjected to risk; it needs to be safe, so that it is still there when you want it, regardless of how the stock markets are performing that day. For instance, if you were saving for a car, use a money market account with a mutual fund company. Don’t put money into a mutual fund unless you’re going to leave it alone for at least 5 years. Your savings is not an investment.
