The two are important and related, but not synonymous. Saving is the process of putting money aside for later use and not spending it. Investing is what you do with that money to make it grow so that you can meet your financial goals. You can put your savings in a bank account and save for a variety of reasons like buying a house, vacation or retirement. Investing involves committing money into an investment vehicle, such as stocks or mutual funds, in the hope of making a financial gain. Investing is different from saving because it involves a greater level of risk and there is no guarantee that you will get your money back.

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