Saving vs investing vs gambling

Saving is about keeping money safe for future use. The goal is security and easy access, rather than high growth. For example, money in a bank account, savings account or money market account is typically used for emergencies, short-term needs or day-to-day expenses. The risk of losing your money is low, but the potential for growth is also low.

Investing is about growing money over the medium to long term by putting it into assets such as shares, bonds, property, or diversified funds. The goal is to make your money grow over time, but it’s important to understand that its value can go up and down along the way. Good investing usually involves doing some research, spreading your money across different investments (diversification), thinking long term, and managing risk carefully.

Gambling is money placed on an uncertain outcome, mainly driven by chance, with a high risk of losing it. The goal is usually a quick win. Unlike investing, gambling does not create underlying value, is not based on owning assets, and the odds are generally designed to favour the house (gambling institution). That is, after all, how they make a profit.

Meet Onke, Anathi and Puleng, three people with different approaches to money. This infographic explains why, in the long run, saving and investing are much smarter choices than gambling.