4 ms·

Saving is preservation of capital whereas investing is growing capital. At least that is my take.

• jfk13 7y ago
  Saving is normally expected to be minimal-risk preservation of capital, whereas investing risks capital loss (alongside hoping for capital gain).
  • perl4ever 7y ago
    Yeah, a person could distinguish them this way, but you're using the passive voice. Who habitually uses the words in this manner consistently, in what contexts?
• perl4ever 7y ago
  Ok, but parent is lamenting that "saving" pays less than "investing". You're saying that's implied by the (or your) definition so it seems like it would go without saying.
  • wffurr 7y ago
    It's not that saving pays less than investing; it's that it's paying almost nothing right now. Savings account interest rates are terrible, which is very frustrating if you want to have some cash reserves. I'm not going to put my 6 month emergency fund or the downpayment for my future house into stocks and ETFs; they're too risky. It hurts to keep it in a savings account paying less than 1% though, which is the alternative.
  • tree3 7y ago
    > "saving" pays less than "investing" It does, except for when cash performs better than equities (like during a bear market).