Saving versus Investing

The_Fiddler_2

With the way interest rates are going just now is it better to invest, or just to save in a savings account?

influence

Investment is a long term commitment. It is actually what I term it as a money management strategy. I actually would put saving as part of investment (which come with almost no risk except if the bank shuts down ) whereas the conventional investment options comes with more risk.

Is it better to invest? Yes.
Is it better to invest in stock? depends
is it better to save (or 'investing' your money in a saving account? depends

I would ask myself how I want to control my cash flow. Do I need money in short term? What is my target? Do I have emergency fund for rainy days? Under which combination of money allocation will I hit or exceed my target?

I think by answering to yourself. YOu will have some idea how you want to place your money and you will be more convinced that you have made the right choice.

Good Luck

debbie42

The_Fiddler wrote: »

With the way interest rates are going just now is it better to invest, or just to save in a savings account?

To some degree it depends on your attitude to risk.

My portfolio consists of a mix of cash, equity, and other things.

I'm comfortable looking towards the long term (20 years or more) with my share portfolio.

Milarky

It's easier to 'save' into an investment than it is to 'lump-sum' invest - that's the best approach for most people who don't really know what their doing necessarily (and I include myself.) If you 'save' your monthly subscriptions into an investment product (stock and shares ISA, unit trusts, investment trusts etc) then you can't really lose very much in the short term (because you won't have put much aside in that time) if prices drop. It is only over time that your staked money becomes significant and the risk/reward grows correspondingly gradually also.

Saving regularly has other advantages: It is like a budget for bills (except you are paying yourself) and you tend not to look at what's in your account very often as the months roll around. You should look for products that offer you the flexibility to start and stop or vary payments - the old fashioned 'penny-dreadful' insurance policies are the ones to avoid. But as most 'investment' products offer savings-type schemes perhaps that was the way you meant the question to mean?