Saving and investing both involve you setting money aside to reach your goals. Saving typically means setting money aside for emergencies or shorter-term goals in accounts that are easy to access (liquid), safe or insured against loss, and have a fairly low rate of interest. Investing usually means putting money into the market (stocks, bonds, mutual funds, etc.) for medium- or longer-term goals, and will typically be a little harder to access, as well as more volatile (depending on what you choose to invest in). We believe that everyone should have an emergency fund (savings) and then should save or invest for their own specific goals. Frequently, many people start saving for emergencies or specific short-term goals like a vacation or a new car, and begin investing in a retirement plan. You may want to invest in order to send your children to college, or to fund other goals like traveling around the world or starting your own business.