Sometimes the words saving and investing are used to describe the same thing, and although they’re both important parts of our financial resilience and wellbeing, we need to understand their differences.

Saving and investing can both provide a way of getting where you want to go, they just take different routes to get there.

Here’s what you need to know.

Even putting away the smallest amount gives you a contingency fund for emergencies and gets you in the habit of saving, rather than shopping on credit. When you have reduced your loans and paid bills, you can increase the amount you’re saving.