Is There A Difference?
There is a difference between both saving and investing, but what are they?
Well, savings are what you are put away regularly. Most people will save for short and medium-term financial goals such as a new car, or an emergency fund.
Whereas an investment is an amount of money you put to work very deliberately in order to grow your wealth. Investments are not usually held as cash.
So, which one should you choose?
If you want to build your wealth, it’s not a question of choosing between one option or the other. Most of us should be doing a bit of both saving and investing. How you split it depends on your goals and financial position.
Us Irish usually shy away from investing and that really needs to change. Irish people need to follow the UK and US example, and take more opportunities to put our money into investments that can grow their wealth.
Can I beat the bank?
It’s obvious that leaving your money in cash isn’t an investment at all, since the interest paid by the banks is so poor. Instead, a low-risk investment fund can be a good option for medium-term savings, or funds you need to access at short notice.
If you are going down this route, pay close attention to the fees, especially exit charges that apply. If you need to cash in quickly, the last thing you want is unexpected charges.
So make sure to look into investing some of your money. Investing grows the money you already have and could really help you out in the future. Talk to a professional about investing today!