Deciding what to do with our money is an often tricky minefield, particularly when we are not well-versed at handling our finances. We discuss the important points that will help you decide if saving or investing is the best course of action for you, depending on your personal situation and financial goals.

The difference between saving and investing

Saving our money means putting some of it aside, with the aim of accumulating it to spend on something specific, like a deposit on a house, a big holiday, or for everyday emergencies, such as broken washing machines. This normally means you’ll be putting your money into a saving account, where it won’t be at risk and you can earn interest on it.

Investing, on the other hand, is where you use your money to try to make a profit, by putting it into things that you think will increase in value. There are plenty of places to invest, such as stocks, shares, funds, property, art or gold.