Save or Invest? What You Should Know Before Doing Either

Effectively lay your financial foun dation by learning the differences between saving and investing.

Secure Your Financial Future

Do you or your friends sometimes use the terms “save” and “invest” synonymously? 

Make no mistake though — while both saving and investing are key aspects critical to shaping your personal financial planning, they are actually vastly different! 

Saving refers to setting aside an amount of money for future use – in essence, the more you save, the more money is amassed. Contrarily, investing means putting the money that you have to work on some sort of project or business or undertaking that will potentially generate returns over a period of time.

Nevertheless, we should be actively engaged in both to secure our financial future. Read on to find out how you can benefit from either one.

Differences Between Saving And Investing

Before deciding what you should do with your money, it’s important to understand the difference between saving and investing. That way, you can make a sound financial decision.

Here’s a little something to help you do exactly that.

So, Should I Save Or Invest?

While it’s best to do both, always take into account your financial situation first. The right choice heavily depends on that.

Do you need money in the near future and have not built up a fund? Do you have a debt or loan to pay off? In this case, you should hold off on investing for the time being and focus on saving. On the flip side, if you’re comfortable with monetary risks, have an emergency fund built up and don’t need any money urgently, it’s probably the best time for you to invest! 

The key is finding a comfortable balance between the two. A good place to start could be with UOB SimpleInvest! It’s a digital investing platform that provides investment solutions curated to suit your needs. All you have to do is log in to UOB TMRW and access SimpleInvest under the Wealth tab. Once you do, you’ll be a step closer to reaching your financial goals!

Credit and Citations

James Royal, Saving vs. investing: How are they different and which is better? https://www.bankrate.com/investing/saving-vs-investing/

Saving vs. investing: What’s the difference? https://www.usbank.com/financialiq/invest-your-money/investment-strategies/saving-vs-investing-whats-the-difference.html 

Julia Kagan, Savings, https://www.investopedia.com/terms/s/savings.asp

Elvis Picardo, Investing, https://www.investopedia.com/terms/i/investing.asp

Ben Taylor, The Costs of Investing, https://www.investopedia.com/investing/costs-investing/