Understanding the Difference Between Savings and Investments

Season One; Episode Four

In this episode of Save Yourself Podcast, the four founders of Unlimit Wealth discuss the key differences between savings and investments. They highlight that savings is money that can’t be lost and is often needed for immediate or short-term needs such as a future purchase or a vacation. On the other hand, investment is money that is exposed to some risk for a higher return. The hosts stress the importance of not intermingling the two terms and advise that excess savings should be created before investing. The conversation also sheds light on how most financial advisors focus on the investment part due to the commissions they get, often neglecting the bigger bucket of savings. To conclude, they underscore the importance of placing savings in something predictable and guaranteed as it gives more options and opportunities for sound investments in the future.

00:00 Introduction to the Podcast
00:32 The Difference Between Savings and Investments
01:56 Misconceptions in the Financial Advisory World
02:16 The Importance of Excess Savings
02:35 Understanding the Flow of Investments from Savings
02:47 The Role of Savings in Financial Planning
08:53 The Impact of Savings on Investment Risk
11:24 The Importance of Segregating Savings from Investments
13:49 Closing Remarks and Contact Information