Saving or investing?

In my opinion everybody should do their best to build up an emergency savings fund. That’s the advice you can get from me. The general rule is to have 3 months’ worth of living expenses saved up in an instant access savings account. This should include rent, food, school fees and any other essential outgoings.Take some of your money and try to make it grow by buying things you think they will increase in value. For example, you might invest in stocks, property, or shares in a fund. In the end, this decision is up to you.

Saving involve putting cash into a savings account and (hopefully) adding it regularly. Your capital is not at risk and you have the opportunity to grow your money by earning interest. However, sometimes the interest rate paid on your money is lower than the rate of inflation, so your money could be worth less in real terms. My advice is to invest. There are always risks, but you can invest in properties, stocks, bonds, gold, petrol, foreign currency, art, loans…. There is no wrong choice!

Investment returns are not guaranteed. This means there’s an element of risk when you invest money. For instance, you may buy shares only to see the share price fall. Some investments involve a high degree of risk but also the potential for greater returns. How much risk you should take depends on your personal attitude to risk, your investment goals, your need for returns and, of course, your capacity for loss.

Well, well well… as you have been told when you invest your money there’s no guarantee. Good luck with that friend!

When investing in real estate or the stock market isn't so easy to get quick money but it can help you achieve bigger long-term goals than savings accounts. Of course you may lose some or all of the money you invest

You can earn interest by putting money in a savings account, but savings accounts generally earn a lower return than investments. A savings account gives you access to ready cash when you need it. But many savings accounts do limit how often you can take your money out. Ask at your bank.

So really, what I gather from all your comments is that I should do both. How do you decide where to invest?

Find an area in which you have some interest: gold, art, stock options (who knows) as it will be easier for you to be interested in your investment. Secondly, find as much information as you can before you start investing in said area and finally only invest amounts you can afford to lose, especially at the beginning.

Amen tomgoldrup57