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Your Money: Should You Save or Invest?

If you are sat here wondering if you should either save or invest then you will quickly find that the answer actually depends on your own goals and even your financial situation as well. This guide is fully designed to help you get to where you need to be while also helping you to know whether you should either save up or invest your money.


Saving is where you put away money for something specific. This could be for a holiday or even for emergencies. You may have to pay for things such as a broken boiler or even cash products. This could also be for a savings account as well. When you invest on the other hand, there is a risk of you losing all of the money that you have saved, but there is a chance for you to increase the value of the savings you have as well.

At the end of the day, everyone should have an emergency fund. If you don’t then you should stay away from investing. It helps to have over three months’ worth of your wage saved up in an account that can be accessed instantly. This could be for food, rent and any other expenses. Your emergency fund essentially means that you have a lot of financial security should anything go wrong. If you plan to invest with your savings then it helps to put away 10% of your wage every month, as this will set you up with a great foundation in which you can start your financial adventure.


Short-term investments are when you look to invest and profit in 5 years. Medium investments usually take up to 10 years and long-term goals set you up for the next 15 years. If you plan to invest over the long term it is important to understand that this may be the most profitable but you also put your savings at the risk of inflation as well. The buying power that you have for other investments is reduced as well, because your money will be wrapped up in an investment.

Commodities and Stocks

If you want to invest in the short-term or even on a monthly basis then you should certainly think about investing in stocks and even commodities. When you do this, you will quickly find that it is very easy for you to make a profit and there are sites out there such as that can help you with this. Of course, if you are unsure about investing in stocks then it helps to use some of the learning resources that are out there because when you do, you can easily learn everything that there is to know about stocks, commodities and more, while also learning when to invest and when not to invest.

All in all, saving and investing is relatively the same concept and they do work hand-in-hand. You have to save in order to invest, and sometimes you have to invest in order to bump up your savings. By understanding your own needs, you can be sure to make the most out of your money.