Understanding the distinction between saving and investing is crucial for building a robust financial plan. Saving involves putting money aside in low-risk accounts for future use, while investing entails buying assets with the aim of generating higher returns over time. Each serves a unique purpose in achieving financial stability and growth. A balanced financial plan integrates both saving and investing. Savings act as a safety net for emergencies and short-term goals, while investing drives long-term financial objectives like retirement or wealth accumulation.
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