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saving vs. investing

Saving money  can be  easy  to understand, but it’s not the only option you have when it comes to your money. If you’ve got a good handle on your savings and debt, now might be a good time to look at investing your money. So, what’s the difference  between saving and investing?  We put together a helpful infographic  to show you.

what is…


money saved over time for short-term  personal  goals, like building up an emergency fund, or making a down payment on a house or a car 


using  money to buy a financial product or asset, with the intention of letting it grow  in value over time, for long-term goals like retirement

what are some examples of


· traditional savings account

· money market accounts


· stocks and bonds

· 401k plans, IRAs and  mutual funds

· real estate

what are some pros of


· inexpensive,  quick and easy to start

· minimal risk

· you can usually access the money as soon as you need it


· potential higher returns compared to saving

· money could grow more quickly

· some investments may offer tax benefits

what are some cons of


· returns on money are low

· money may decrease in value over time due to inflation


· can be expensive to start  

· investments can decrease in value  

· can be risky – returns aren’t guaranteed and funds aren’t FDIC-insured  

Remember: there’s no one-size-fits-all approach to your finances, but it’s important to look at your options and do what’s best for you and your family’s financial future. 

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