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Glossary entry · What you own

Saving

Definition

Saving is the act of holding money in cash or near-cash instruments (a checking or savings account, a money-market fund) where the number stays roughly the same. The point isn't to grow your wealth, it's to have money available when you need it: emergencies, short-term goals, the next bill. Saving is the right tool for short horizons; over decades, inflation erodes its real value.

Example

Keeping six months of expenses in a savings account so a job loss doesn't become a crisis.