What is the term for money set aside from earnings?

The term for money set aside from earnings is savings. Savings refer to the portion of an individual’s income that is not spent on immediate consumption but set aside for future use. This may include funds placed in savings accounts, emergency funds, or other accounts where money can accumulate over time for various purposes, such as financial goals, emergencies, or retirement.

In contrast, investments involve allocating money into assets like stocks, bonds, or real estate with the expectation of generating a return. Expenses refer to the money spent on goods or services necessary for living, such as rent, groceries, or utilities, and do not contribute to future savings. Wealth generally refers to the total value of assets owned by an individual after liabilities are deducted. Thus, while wealth can be influenced by savings and investments, it is a broader concept that encapsulates the overall financial position rather than merely the act of setting aside earnings.