Saving means setting aside money from current earnings to meet some known or unexpected future need. You might think of savings as money set aside in a temporary holding pattern for emergencies, seasonal expenses and major goals.
Investments are permanent.
That's the money you put aside to work for you instead of you having to work for it. Investing means using what you've saved to earn interest, dividends, rent or profits. As you begin building your savings habit, you first need to take care of your emergency reserve fund . You need this for unexpected expenses that are not planned for in the family budget. Your emergency reserve fund is the foundation of your savings program.