difference between saving and investing

[Tobi]

The terms are often used interchangeably, but there’s a world of difference between saving and investing. Savings is the amount of money left over after spending from disposable income. Savings refer to money you put aside for future use rather than spending it immediately. Savings are done for unexpected financial emergencies. Money can also be saved to purchase expensive items that are too costly to buy with monthly income. Investment, on the other hand, is when you spend your income on something that promises to create future returns. It is the process of using your money or capital, to buy an asset that you think has a good probability of generating a significant and acceptable rate of return over time