Saving - is putting money aside, bit by bit. You usually save up to pay for something specific, like a holiday, a deposit on a home, or to cover any emergencies that might crop up, like a broken boiler. Saving usually means putting your money into cash products, such as a savings account in a bank or building society.
Investing - is taking some of your money and trying to make it grow by buying things you think will increase in value. For example, you might invest in stocks, property, or shares in a fund.
As I do see it, the money can be divided into several parts. Use one part for making investments - it will give you an income (but you surely risk). The 2nd part can be saved, and the 3rd part can be used for everyday needs.
