While they go hand in hand, saving and investing are distinct activities. Saving is the act of setting income aside, not consuming, while investing involves buying assets that put savings to work.

Saving and investing pose distinct challenges. Saving requires the discipline to postpone purchases, which may involve driving a modest car or making do with a modest wardrobe. It takes discipline to save. Meanwhile, successful investing requires that one watch and manage a portfolio of assets in order to meet personal goals of return and safety. This requires diligence and careful attention to changing asset values.