The difference between what you earn and what you spend on an ongoing basis is your disposable income. If you save it in the form of some recognized standard (e.g. U.S. dollars, Canadian dollars, gold) it is considered savings and you can use it in the future. The difference between savings and investment is that savings are liquid (you can access them when you need them), whereas investments tie in your savings and don’t guarantee how much you get back or when you get it back.

Tips On Saving Money

– Create a budget.  Start with your after tax and after government remittance income and then list all the expenses you have on a monthly basis. For annual expenses such as car insurance divide them by 12 and include them as monthly expenses.

– Track your budget and control your spending habits

– Minimize your expenses

– Park your savings in a safe place