Saving and investing are significant parts of financial planning. However, saving means putting a fraction of your income in low-risk, accessible options like savings accounts or fixed deposits. It is used to keep cash aside for short-term needs or emergencies, offering security and liquidity with low risk.

Investment is actually investing money in something like stocks, mutual funds, or real estate to gain the returns over some period of time. Investments are made for the long-term purpose of growth of finances and generating wealth. Since they can pay more, there is always an element of risk involved in making investments, as well as some knowledge about how the market moves.