Is it better to invest or save money?

[skrimon]

I see investment and savings as synonymous to each other in many ways.

If you save in a bank, what is the level of risk of that bank? A safer bank provides lower interest - so it would be a low-risk, low-return investment for you.

If you decide to save with a credit union that pays higher interest rate but has a smaller balance sheet with less diversified portfolio and thus possesses a higher risk (market or operational), then you are making a relatively higher risk by looking at higher returns the credit union will.

So I would rephrase your question as, “how to balance between risk and return?”

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And my answer would be this:
How precious is this amount of money to you? How badly would it hurt your plans if this money were totally gone? If it is a savings amount that is disposable of, feel free to take relatively higher risk - expect higher returns.

Of course, always calculated, informed and in investment avenues you are familiar with!

But if the sum is needed for something specific, or you have plans to use it in near/far future or if this is your basic savings for financial security - then investment in zero or low-risk instruments - savings account, certificate of deposit, government bonds, etc.

Hope this helps.

 

[HeavLeighGill]

Good post. I've always wanted to invest money, but also to keep some in savings. The savings would be meant to stay off limits unless there was an emergency, while the invested money would be left to accrue profits (hopefully).

 

[anderson00]

personally have small save and rest is on investing

 

[fatho]

At the moment there is great inflation in many states. Also, we have many conflicts. I want to say money in the bank account or at home.
That's probably wrong!
I think you should also talk about value or Think about value funds. Something that is valuable and
that you can hold in your hands, such as antiques, Pictures, precious metals or precious stones.
Things like that can also hold the value or even (sometimes very) increase.

 

[Meamonk]

Saving is like addition, while investing is multiplication. Which one is bigger? Investing can help you beat inflation and retire early. Saving only eats your funds. However, save some money for your emergency needs. But do invest.

 

[Balshine]

Both. However, learn to invest because it will help you in the long run. However, also don’t neglect savings. You might require immediate money because of emergencies.

 

[Isthmus]

In comparison to saving one's money, I believe that investing one's money yields better results. Because if everything goes according to plan, investing can multiply your money, but saving cannot.

 

[keiba888]

I am new to forex and need some recommendations. Help me!

 

[Daantje Pieters]

Work on your strategy to increase its effectiveness by warding off its pitfalls. This practice is rare among traders. Traders should use multiple strategies at a time to produce better signals.

 

[TheFxGuru]

A combination of both is needed. Now how much of each will depends on your risk appetite. Usually the higher the risk, the higher the reward.

 

[Daantje Pieters]

If you don’t know how to trade the market properly, then you better save money.

 

[akinomono]

Whether it is better to invest or save money depends on your financial goals and personal circumstances. In general, it is a good idea to have a balance of both saving and investing.

Saving is important for building an emergency fund, which can cover unexpected expenses such as medical bills or car repairs. It can also help you save for short-term goals, such as a down payment on a house, a vacation, or a new car. Saving typically involves putting your money into a savings account or a certificate of deposit (CD), which offers low-risk and guaranteed returns.

Investing, on the other hand, involves putting your money into assets such as stocks, bonds, mutual funds, or real estate, with the goal of generating a return on your investment. Investing carries more risk than saving, but it also has the potential to generate higher returns over the long term. Investing can help you achieve long-term financial goals such as retirement, paying for your children's education, or building wealth.

It's important to note that investing involves risk, and it's important to carefully consider your investment choices and diversify your portfolio to manage that risk. In general, it's a good idea to have an emergency fund with three to six months of living expenses before investing. Also, be sure to consult with a financial advisor or do thorough research before investing to ensure that you understand the risks and potential returns of your investments.

In summary, saving and investing both have their advantages and should be balanced based on your personal financial goals and circumstances. Saving is important for short-term goals and emergencies, while investing can help you achieve long-term financial goals and build wealth.

 

[jhon56983]

Invest. If you invest it will grow. If you save it will get spend one day

 

[deroty]

Make basket. A little low risk investments like bank high %, a little higher risk investments .