Should I Save or should I Invest my Money

Should I Save or should I Invest my Money?

This question has taunted a lot of people at a different point in their lives when they ran into a stack of cash. The following post will help you make a better decision when next you have to make this decision.

Wealth accumulation factor

You can only become rich by investing: Savings is a deferred expenditure; You will eventually spend the money. When you save you are only postponing the time you will spend the money. Investing, on the other hand, is great because it grows your income. more so, the interest gained during investing can always be reinvested to accelerate wealth.

Inflation Factor

The inflation rate in most countries exceeds the interest people earn in saving the account. Hence if you were to have a savings earning 3% per annum and have the inflation of your country at 5%. At the end of the year, you will have lost 2% of your money. On the other hand, investing your money for a return of 8% per year will help you gain 3% on your money. Thus, you would have saved your money whilst making more money at the same time.

Savings Factor

As the word Savings implies, the safety net provided by savings is the one that makes a lot of people to prefer savings. there is always a risk associated with investments that many people don't like incurring. If this is the case for you, savings may still be a better choice.

Bottom Line

My advice is to save half of your earnings and invest the other half in some investments. This blog has a lot of options for you to consider. some include bonds (for people who want safe investment) other includes Gold, others include Forex.

Just make sure that your investment is sufficiently diversified.