How to Deal With Saving and Investing

How to Deal With Saving and Investing
  • Opening Intro -

    Hoarding money is hardly a good idea – the very point of monetary transactions is exchanging money for stuff that you actually need – in itself, money is worthless – its biggest strength lies in its exchangeability.


The two smartest things you can do with your money are saving and investing it. Naturally, saving means letting your money grow slowly, while investing is a riskier, but potentially quite a bit more profitable option. This entry will hopefully help you decide what to do with your money.


Here’s the very essence of saving: put your money aside little by little by little and watch as it grows slowly. This admittedly snail-paced way of going smart with your savings ensures a secure and stable growth of your, well, savings. These savings allow you to take out portions here and there for everything, from things such as holidays and trips, to bigger investments such as vehicles, putting deposits on properties and for emergencies. What saving money precisely means is putting it into cash products, such as banks and/or saving accounts in a building society.


Now investing, as you’d expect, is a bit riskier but potentially way more profitable. Unlike saving, investing means focusing on growing the money that you’ve put on the side exponentially, without chipping away at your earnings.

Essentially, investing means buying things that you think are likely to increase in value, so as to make your finances grow. The most common investment methods are stocks, shares in a fund, property, etc.

Saving vs. Investing

Obviously, saving and investing are both smart methods of handling your money. However, they are two very different beasts. Here, we’re going to try to help you realize how you can handle both saving and investing.

First of all, never forget that saving money is more important than investing it; think of investing as a luxury and consider saving a necessity. The connection between saving and investing is rather obvious: investments depend on your savings.

Investing and Timing

Contrary to the popular belief, the biggest challenge of investing isn’t choosing the right thing to invest in. Rather, it’s picking the right timing to do so! Choosing a sound investment is relatively easy – every seasoned investor will tell you so. The real challenge, and an often unpredictable one at that, is timing and some luck.

As such, investments aren’t really perfect, which is why you need to make sure that you have enough savings to cover all your personal expenses, such as insurance costs, loan payments, utility bills, mortgage, clothing, food etc., and for at least the next 6 months. Better be safe than sorry here, trust me.

stock market

Creative Commons Image by pixabay

Investment Opportunities

Risky though it is, every extra cent you have lying around (extra, meaning outside the above-mentioned 6-month-pool) is well worth investing. Of course, property is always a fantastic choice, but you should bear in mind that this type of investing takes a while to start paying itself off.

The stock market can be very, very profitable, but is extremely volatile and, therefore, risky.

Investing into something stable like gold might be the best idea. Contact a trustworthy gold bullion expert and browse all the lucrative deals. This is an investment that can actually pay itself off quickly and heftily, at that! Why is this the case? Well, while the rest of the market is going through frequent fluctuations, the price of gold remains fairly stable.

When to Say No to Investing and Saving

If you want to ensure that your loved ones are financially covered in case of your death, or if you are having debt issues, you should definitely avoid both saving and investing. There’ll be plenty of time and opportunity to grow your finances once you’ve settled on a steady cash flow.

Saving and investing have financial growth as the final goal, but that’s pretty much the only thing that they have in common. You should know that picking the perfect timing and finding a suitable opportunity make for the essence of investing, but you should also make sure that you can take a financial punch before venturing into either of these means of growing your money.

Image Credit: Pixabay

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