We all want to set money aside for our future needs. However, very low interest rates mean that cash savings alone may no longer be enough. To have the chance to earn the returns you need for a brighter tomorrow, consider taking the step from saver to investor today.
Saving vs. Investing
Saving
Cash-based savings accounts can be used for short-term goals, such as establishing a rainy day fund to cover at least three to six months of outgoings, or paying down credit card debt.
Cash savings offer lower potential to grow your savings than investing but are considered low risk and make it easy to access your money.
Investing
Investing in the markets can be used for long-term goals, such as retirement planning or saving for your children’s education.
Investing offers higher potential returns than cash savings, but there is more risk because of the market’s ups and downs, and you could get back less than you invest.
Getting started with investing
1. Consider what you are looking to achieve
Take the first steps towards investing by considering your savings goals and how much risk is right for you.
2. Understand your investment choices
Explore different types of investments and find out how investment funds can help you achieve your goals.
3. Investment funds for you to explore
Find out what type of investor you are and explore the investment funds that may help you reach your long-term goals.
4. The principles for successful long-term investing
Seven time-tested strategies to help you achieve long-term investing success.