Expert Tips for Achieving the Ideal Balance Between Saving and Investing

Written by Emily J. Thompson, Senior Investment Analyst

Source: NASDAQ.COM

Updated: Sep 08 2025

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Source: NASDAQ.COM

Difference Between Saving and Investing: Saving is focused on safety and liquidity for short-term needs, while investing involves risk with the potential for growth over time. Both require discipline, but their goals and outcomes differ significantly.
Common Mistakes: Many individuals mistakenly prioritize saving over investing, especially for long-term goals like retirement or education, which can lead to lost value due to inflation.
Guidance on Strategy: Financial planner Connor Bauserman suggests that if your emergency fund is solid, you should invest money that won’t be needed for several years to take advantage of compounding growth.
Timeline Consideration: The key to balancing saving and investing lies in understanding your timeline; funds needed in the short term should be saved, while those for long-term goals should be invested for better growth potential.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.