Is it Better to Save Money or Invest

We get given a lot of conflicting information when it comes to what we should do with our money. In one ear, people are telling us to save our cash. Squirrel it away in high interest accounts and piggy banks. Others are telling us to invest. Buy property, trade on the stock market, and purchase commodities. Which side do we listen to? We thought we’d stop this argument once and for all. Here are the pros and cons of saving and investing. Along with our final conclusion at the end.


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Let’s kick off with the one we’ve been told to do ever since we were little. Save your pocket money! There are tons of adverts around regarding savings accounts and pension plans. All are telling us that we need to save for the future. Many of us already have savings accounts that we aim to put a little in each month. Saving up for a rainy day or a significant expense. We’re told that this is the safest thing to do with our money. It’s the smart thing to do with our money. Makes sense! However, most of our money won’t ever make any interest. Unless you’ve already got a lot of money in the bank, you’ll barely notice the interest. Even if you’ve got great rates. Putting your money into savings is never going to make you a residual income. It’s simply there to keep it protected and help us save up for the future. As long as the bank doesn’t go bust, our money is safe. We’ll just never make a lot of money from it.


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On the other side of the coin, investing. Even buying a property is classed as an investment as you’re hoping it will make a profit when you come to sell. Although many people think that trading stock or commodities is the only way to invest. There are plenty of different types of investment opportunities out there. From trading forex with a company like ACM Gold right through to buying and selling fine wine. If you have an expertise in any kind of niche, then there may be a way of using it to invest. Classic cars or fine art, for example. This diversity of opportunities excites a lot of people and is what encourages them to start trading. However, there are risks involved. There is no guarantee that you’ll make any money by investing. In fact, you could lose money. The riskier the investment the more you could make. That’s how the trading world works. You can make an impressive income through investing, but you could also lose it all.

Hopefully, we’ve put it all into perspective for you now. Saving is a way of putting money aside for the future. It’s not a way of making an income, but it is a safe solution. Investing is the complete opposite, effectively. You can make a profit from it, but it can be risky. So, which one is best? Both! Firstly, fill your savings account. Make sure you have enough money for the things you need. Perhaps three months worth of living expenses too. You can then use anything outside of that money to invest. And hopefully, make a residual income.

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