When deciding between saving and investing, it’s important to understand the differences between the two. Saving money is a more liquid solution, where the money is easily available without having to wait to have it released. It’s great for short-term goals, such as buying a house, preparing for health bills, and going on a trip. It’s low-risk, ideal for people who don’t have money to risk losing. By saving in an FDIC-insured account, you can sleep soundly, knowing that you’ll get your money back (up to $250,000) if the bank ever closes or declares bankruptcy. You earn interest on these accounts.


Investing is a great option for people who are looking to truly profit off their current savings, but it’s not risk-free. Because investing is not FDIC-insured, it’s important that you have backup funds in case you lose everything that you have invested. This can be ideal for people looking to save up for long-term goals such as college or retirement. While it’s possible to gain significant profit off the money put away in investments, you can’t quickly access the funds in an emergency, or you may be fined for doing so. Some investments are tax-free until you withdraw, and other options require you to pay taxes when you deposit.

Should I Save Or Invest?

When deciding to save or invest, it’s important to note that there is no one-size-fits-all solution. For most people, the ideal solution is a combination of the two; some money put away into investments, to touch upon retirement, and some money in traditional savings accounts, where you can access the money if you decide to travel, make a large purchase, or have an emergency. By diversifying your money into both savings and investments, you are more likely to profit effectively without sacrificing your quality of life in the process! Remember to talk to a financial advisor before making any major changes.