This is why you should invest and not only save
Do you think saving is the same as investing?
If you’re already setting money aside every month, congratulations! That’s the first step. But if you keep it under the mattress or in a savings account with nearly 0% interest… your money loses value over time. In this article, you’ll learn why saving is not the same as investing, what the key differences are, and how you can use both strategies to reach your financial goals.
Why should you keep reading?
Saving means setting aside part of your income and keeping it for future use. Typically, money is saved in a bank savings account, a piggy bank or safe, or a fixed-term deposit. So… what’s the goal of saving?
To have an emergency fund, plan a future expense (vacation, studies, purchases)
To feel secure against unexpected events
Saving is safe and liquid, but it generates very little return (and sometimes none at all).
What is saving?
Saving is setting aside part of your income and keeping it for future use. Normally, it’s kept in a bank savings account, a piggy bank or safe, or a fixed-term deposit. So… what’s the goal of saving?
Building an emergency fund, planning a future expense (vacation, education, purchases)
Feeling secure in case of unexpected events
Saving is safe and liquid, but it generates very little return (and sometimes none at all).
What is investing?
Investing means putting your money to work with the intention of generating a return. Unlike saving, here you take on risk, but you can also multiply your money.
You can invest in: stocks, ETFs, bonds, real estate, cryptocurrencies, your own business or startups, and many more!
But remember: when you invest, the value of your money can go up or down — yet over time, it has the potential to grow much more than in any savings account.
Saving vs Investing
Characteristic | Saving | Investing |
|---|---|---|
Safety | Very high | Varies depending on the instrument |
Return | Low (0%–2% annually) | Medium to high (can exceed 10%) |
Liquidity | High | Depends on the type of investment |
Risk | Very low | Present (losses possible) |
Time Horizon | Short term | Medium to long-term |
So then... which one is better?
It’s not about choosing one or the other. The ideal approach is to have both: first secure your peace of mind, then make your money grow.
Recommended strategy for beginners:
Save an emergency fund (3 to 6 months of expenses).
Then, start investing for the long term with an amount you won’t need anytime soon.
You can automate your monthly contributions to both saving and investing.
How can I start?
Saving is the first step, but it’s not enough to build wealth. Investing allows you to multiply what you save, grow your assets, and reach more ambitious goals. The key is understanding the role each one plays:
Saving protects you, and investing drives you forward.
Check if you already have an emergency fund. If not, start there.
Set aside a portion of your income that you can invest without touching.
Go to Compare and find platforms to start investing with small amounts and easy-to-use options.