Saving or investing your money depends a lot on what your financial situation is and what your goals are.
There’s a difference between saving and investing. Saving is putting money aside month by month for a holiday or a car. It might also mean putting some money aside each month, just so that you’ve got some money in an emergency savings fund. Investing is taking some of your money and investing it in property, mutual funds, bonds or stocks for instance with the sole purpose of making it grow.
Whether you Invest or Not – ALWAYS Be Saving
Nobody knows what tomorrow will bring – no-one can guarantee that you’ll make money from the investments you make. But if you make some intelligent plans and as early as possible start saving, you should be able to enjoy financial security, and also benefit from the wise choices you made with your money.
If you believe that that you don’t have money to save or invest, that may be true, but at least for now, try to look for ways to cut back on your expenses – there are always one or two things you can do without. If you watch what you spend and look for small ways to save, you can make money, and make it grow.
You need to be wise about saving because you don’t want to leave your money in a savings account for years to discover that the interest it earns hasn’t kept up with inflation.
Probably the only time somebody wouldn’t advise you to save or invest is when you’ve got lots of debt you first need to settle. Certainly, before you invest, be sure you’re prepared to cover your expenses in case of an emergency.
To get started with investing, it can be beneficial to work with professionals. CMC Markets is an an accredited, registered online retail financial services business who has expanded their CFD offering to include derivative trading, providing products and rading features to clients that were at one time only available to institutional investors.
With Savings your Money is Readily Accessible
Some people who don’t have lots of money want to know more about investing, especially because they worry they might not be able to get their hands quickly on their money when they need to. In fact, the main advantage of saving is this – having immediate access to your money when you need it.
There may be penalties associated with withdrawing money from an investment account and you may have to wait 2 or 3 days for the money to become available. Investments, on the other hand, can be tempting for people who don’t have a lot of money to throw around because it offers the potential for higher returns than a regular savings account.
Taking on Risk with Investing adds to the Thrills
When you invest, you have a bigger chance of losing your money than when you save. The money you invest in mutual funds and other similar investments isn’t federally insured. You could lose the amount you invested, but then again you also have the opportunity to earn a substantial amount of money.
All investments involve taking on risk, but this is what drives some people – the thrill. You just have to go into any investment in stocks or bonds for instance, with the understanding that you could lose your money.
It is often said that the greater the risk, the greater the rewards with investing. When you invest with an experienced, reliable brokerage, they’ll provide you with advice on how as an investor, you can protect yourself against risk by spreading your money among different investments. Diversification can’t guarantee anything, but it can improve your chances of not losing too much money.
How Your Money Works for You
Your money earns more money when it’s working for you. Something like a bank, for instance, pays you to use your money, and when you get your money back, you get it back, plus interest. Other people invest in something like property or stocks as this is an easy, fun and profitable way to build some extra wealth.
Save or invest? What suits one may not suit the other. What everyone does agree on however, is that if you do decide to invest for the first time, the secret comes in finding the best brokerage who can offer you sound advice which comes from tried and tested experience.