Investing is a complex and ever-changing field. Consequently, most of us, even those involved in the investment field, occasionally are confused. This publication defines the difference between saving and investing, considers some financial requirements you need to meet before you start to invest, helps you define just what type of investor you are, gives advice on choosing an investment adviser, and offers some investment tips for beginning investors. To help clarify just what is being discussed when talking about investing, let's define two terms.
Saving is money set aside for future use while investing is money set aside for future gain .
The difference is not a large one, but the implications are many. Keeping these two definitions in mind, let's look at some financial requirements you probably need to meet before you start to invest. Before You Invest Emergency Fund. Financial experts say you need the equivalent of three to six months' living expenses set aside for emergencies. This is money that will not be used for long-term investing, and, according to the definition of savings and investing is more saving than investing.