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The Difference Between Savings and Investing: Why Do You Need Both?

The article from MSN Money discusses the fundamental differences between saving and investing, highlighting why both are essential for financial health. Savings are described as money set aside for short-term goals or emergencies, typically kept in low-risk, easily accessible accounts like savings accounts or money market funds, where the primary goal is capital preservation and liquidity. Investing, on the other hand, involves putting money into assets like stocks, bonds, or real estate with the aim of growing wealth over the long term, accepting higher risk for potentially higher returns. The article explains that while savings provide security and immediate access to funds, investing is crucial for combating inflation and achieving long-term financial goals like retirement. It emphasizes the need for a balanced approach: having enough savings for immediate needs and emergencies, while also investing to ensure future financial growth and security. This dual strategy helps in managing both present and future financial requirements effectively.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/personalfinance/the-difference-between-savings-and-investing-why-do-you-need-both/ar-AA1ymcez ]