Investment VS Savings, What option should I go for?

Investment VS Savings, What option should I go for?

Investment and Savings are two different concepts, it’s very important for you to understand the core of both concepts.

So, today through this blog we are going to discuss them to give a clear picture of both.


The difference between Investments and Savings can be measured in associated risks, rate of returns, liquidity, and of course purpose. Though, unarguably, the purpose of both is to stable financial future. Before digging down deeper let’s first understand both the concepts standalone.


Investing is reserving a portion of your wealth somewhere to generate some more wealth for you in form of returns. While the risk attached to the investment is bigger. It may not allow you to withdraw your money instantly sometimes, either may sometimes your investment doesn’t give you as you expect or in some cases, you may have to lose your hard-earned money.

So, in case if you’re a salaried person or you should always have some amount kept in savings for unforeseen situations and also invest a portion of your money to generate some more income to gain your total wealth.


However, Saving is a dedicated portion of your salary or income that you kept aside to utilize in the future when you need it. Establishing an emergency fund can also help you to utilize your money when it is needed.

Now let’s have a look at what keeps both of them apart from each other.

Requirement of Amount:

Saving requires very less amount as compared to the amount you need for investment. Savings depends on your own will; it can be started with a minimal rate according to your budget. This little amount will gradually become a good sum to utilize anywhere you want or even invest somewhere.

On the contrary, for investment, you need a huge amount to invest somewhere. The purpose of this money is to generate revenue, so you can buy something that appreciates by the passage of time. Like Investing in gold, stock, or real estate.

Associated Risks:

Savings are free from risks as compared to investment. People usually save money at home or bank. So, there is a lesser risk of loss or fraud. Also, they have a reasonable amount of money available when needed. However, investors take higher risks by investing their capital somewhere with the aim of higher returns. Likewise, you also need higher capital to invest, but the gains are higher. To earn higher returns the investors are advised to make a prior homework and risk analysis before investing anywhere. It can help you to avoid big losses, panic and dishearten.


Liquidity is another major difference between savings & investment. Savings are more liquid over investment. From savings, you can easily withdraw money whenever you want. But it isn’t the same in the case when you invest.

For instance, if you’ve invested your amount in real estate you won’t be able to do that same unless you sell your asset.

Why do people Save or Invest?

People save or invest for different purposes and intentions. People usually go for these options to fulfill different long or short-term needs. The purpose of short-term savings could be purchasing an asset or to vacation trip or any other need. However, the purpose of investing your money can be to increase your income.

Which would work better?

It totally depends on the situation you’re facing. Everyone has different goals, financial positions, and approaches. It doesn’t unavoidably mean that if a plan works for one it would also work for another. Keeping the above factors in mind, we will suggest you not ever put all your money in either savings or investment.

At first, you must be clear about the purpose and requirement to reserve your money. For example, if you think might you be needing money in a year or earlier, go for savings. However, if you think you wouldn’t be needing money for the next few years then you should consider investments.

For short-term investment, the stock exchange option won’t be suitable. However, if you can hold your investment for 3 to 5 years then this option is good.

What about the Real Estate Investment Option?

Real estate investment is the most common and profitable investment option in Pakistan. It is considered a reliable way to increase your wealth and to make steady income growths. If you’re willing to invest in real estate, you can easily find different under-developing real estate projects with modern standards and all world-class amenities in Pakistan.

These investments are comparatively less risky. Hashi Group of Companies is a well-known finance managing organization, offering multiple real estate investment opportunities in the capital city of Pakistan, Islamabad. For more details, you can visit the site of the company