Should I save or invest my money?

 Should I save or invest my money?

It’s always a sensible idea to think of your future finances, but the trouble for most people is deciding between whether to save their money or to invest it.

Saving typically involves putting money aside to pay for something specific, such as a house deposit, holiday or to have in the event of an emergency, like a car crash. Savings are typically held in banks, building societies or even your personal piggy bank at home.

Investing on the other side is the process of buying stocks, property or shares in the hope that they will increase in value and make you more money over time.

Save for a Rainy Day

Everyone should do their best to save and build up an emergency fund to ensure some financial security should anything go wrong.  It’s good practice to have three or more months’ worth of salary saved to cover your living expenses including; mortgage or rent, food, travel expenses and any other outgoing bills. 

In addition to your emergency fund, we recommended saving a minimum 10% of your monthly wages (or as much as you can afford). This will help you reach your financial goals and afford costly things in life such as a wedding or university fees.


Investing on the other hand is a great way to grow your money, but it’s not for everyone. 

If your short term goals are based on the next five years, the general rule is to save in your bank account. The stock market is known for fluctuating and if you invest for less than five years you might make a loss.

Choosing to invest is the preferred option for those who are more willing to take the risk. There is no guarantee that you will make money from investing but it can be worthwhile.  This is because the rate of inflation can seriously impact the value of cash savings and the stock market tends to do better than cash over a longer period of time. Which can provide you with greater return in your investment.

Financial Investment Advice 

Book a free consultation with our financial investment advisers today for trusted advice on savings and investment.