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Saving v/s Investing is not a new debate. While savings pertains to money put away for short time periods, Investing on the other hand is a decision catering to a longer time duration.
 

 
  Savings is normally the money that is put away for short term periods and is     associated with low risk and low return.
 
 The after tax returns generated from savings rarely outpace inflation
 
 Investing on the other hand is a conscious decision.
 
 Monies are invested for a longer duration of time, over 3-5 years.
 
 The returns generated are generally higher when compared to the returns from    savings.
 
 
 Inflation has a profound negative effect on the amount you accumulate on your    savings.
 
 It continuously eats away the returns that you get on your money.
 
For example: If you are getting 6% interest on your savings fixed deposit and inflation is 5%, than your real return or actual growth in capital is a mere 1%. In case if inflation goes above your interest rate than the returns after adjusting for inflation can go negative also, here you end up actually losing money rather than making any.
 
 
Investing helps you build wealth in the long term and can be designed for specific needs such as,
 
 Education planning
 
 Marriage planning
 
 House planning
 
 Retirement planning
 
 
 It is a simple concept where you earn interest on the principal and also earn interest    on interest. It’s making your money work harder for you.
 
 Investment grows exponentially over time.
 
 It is a powerful yet simple tool investors can use to ride the road to riches.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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