Does InnoDB Log Files take RAM space or Disk Space When I set InnoDB Log File size to 512M, does it take the space (512M * 2) from RAM or the SSD Disk space? 

When I explored, I can see that the log files are located inside /var/lib/mysql folder. So from this I am assuming it is infact stored in disk space and not RAM. I always thought when I allocate log files space it was coming off the RAM and now I have a feeling I was wrong with that assumption. Can someone confirm this please...

Also I am considering to increase the log size to maybe 1GB (for a 3GB Buffer Pool Size) and I am not sure if that would have an effect on my ram usage where I would need to increase my Ram too when I increase the demand for log size. If log files doesnt consume Ram space then I dont see it affecting my ram even if the logfile size are increased. And hence my question to clarify this...
InnoDB log files are stored on disk and so consume disk space - http://dev.mysql.com/doc/refman/5.5/en/innodb-configuration.html. However the innodb_buffer_pool_size does impact memory usage.

I find this a good reference for memory sizing - http://www.mysqlcalculator.com/