Saving and investing are two different thing — although they both play a role in your financial plan. Both involve setting aside some of your income for the future, saving often refers to putting money in the bank — in savings accounts — while investing means putting your money in equities, bonds, mutual funds, gold or real estate.
When you save, you're preserving your money for a later time. You don’t take any risk while saving. It is just like putting money in a piggy bank. When you invest, you're taking some risk that you believe will make it possible for your investment to grow in value over time. While investing can help you achieve your long-term goals, saving is an effective way of managing your money to meet short-term needs and to provide a safety net for emergency expenses. Through investing you can plan for the future expenses and requirement.