Should I invest or save?
24 July 18  /  Insights

People often come to us because they do not know what is best for them in terms of what to do with their money, asking ‘should I save’ or ‘should I invest?’. Whether you should invest or save, the end goal should be financial independence.

Saving means putting funds into an account and adding to it regularly. Your money is not at risk and you have the chance to grow your wealth by earning interest. However, there is also the chance that the rate of interest paid on your money may not be higher than the rate of inflation. Therefore, your money could be worth less over time.

Investing involves committing money into a fund of some sort, for a longer period of time, in the hope of making greater returns than what you initially put in. However, investing involves an element of risk and there is no guarantee you will get all of your initial capital back. Nor is there guarantee you will make a profit. However, there is a greater chance of growing wealth and in a much faster capacity.

Before you decide what is the right financial path for you, you must have clear financial goals and must be able to decide if they are short, medium or long-term.

When you should invest:

1. You want the chance of receiving a return higher than you would receive by putting your money into a savings account

2. You are willing to accept an element of risk

3. You will not need to access the money immediately

4. You wish to invest for the longer term (at least 5 - 10 years).

When you should save:

1. You do not want to take any risks with your money

2. When you need instant, easy access to money

3. You have a short-term goal in mind, such as saving for your child’s wedding or house deposit

4. You want to have money available for emergencies

Speak to one of our Lifestyle Financial Planners for clarity on your financial journey and what actions to take next. We can plan your options and help you understand the best route to achieving wealth growth.

To speak to a member of our team, call 01865 208012 or click here to send an email.