Saving or investing your money, it can be a challenge. In this article we will discuss the pros and cons with regarding to saving or investing. By looking at both possibilities you make a good informed decision that meets with your financial goals and risk that you want to take.

Saving

By saving you have a sense of security and you have easy access to funds when you need them. You have also access to cash for emergencies or unforeseen expenses. By saving with a reputable bank you can save money with a low risk. By knowing that you can have money available you can have a peace of mind. This can reduce financial stress. Saving also acts as a financial safety net. Saving is ideal for short-term of long term goals.

Saving recoures dicipline but to also helps you to manage you finances.

The con of saving is that you don’t get a lot of growth over time with low interest rates.

Investing

By investing you can generate wealth trough interest. Trough good investing. By investing you are spreading risk across various assets. By investing in various assets you are better equipped with regards to market fluctuations. By investing you can build a good retirement fund and create financial independence in later years. Investments can generate passive income. For example by investing in real estate and renting out homes you can generate passive income. Investing is

Saving or investing

Whether you choose to save, invest or do both make a good and informed decision on the risk you are willing to take and time you would like to take. It is important to consider both the saving and investment options. It is important to have a goal when investing or saving. If you don’t have a clear goal it can result in bad financial decisions.