Simply put, one is wealth growth and the other is wealth accumulating.
Both will help in achieving your financial goals, one is faster, the other is not.
Often, when we talk about “Investing”, there are some terms and platforms that comes to our mind: Stocks, shares and perhaps Forex. But is that all that it is?
Saving is about putting a sum of money aside for use in the immediate future or emergency.
Saving, to put it in very plain terms, is setting aside money for future use. For the longest time, people looked at saving as the best way to secure their financial future. But recently, savings accounts has developed a bad reputation especially among millennials for having such low returns. Taking inflation into account, you may even end up losing money in the long run.
Investing, on the other hand, is taking some of your money and trying to make it grow by buying things you think will increase in value. Investing have gone through a facelift in the past few years. What has traditional been a field dominated by older men in grey suits has now been democratized thanks to fast evolving technology which allows you to invest in the market by simply opening an app on your smartphone. And with the wide variety of investment opportunities are available nowadays, it is very tempting even for young professionals to make the leap and start investing.
Now, if you’re wondering which is the wisest thing to do if you want to secure your financial future as early as now, the answer will depend highly on your current situation. Obviously, savings should almost always come before investments. But when is the right time for you to start building your own investment portfolio? Is investing right for you? Or are you better off growing your savings account? Find out using the infographic below.
Securing your financial future is a complex decision that entails a lot of thought, research and in most cases, professional advice. Whether you decide to save or invest or both will always be up to you. But what’s actually more important is that you’re deciding to secure your financial future as early as now. That alone is an vital step in ensuring that you will have a prosperous life ahead of you.