It has always been considered a smart move to set aside money for your future. But it is not always agreed about what exactly to do with that money. Should you invest your money in the bank where you know it is safe? Or should you invest it into things like the stock market?
Well that depends. There are plenty of advantages of investing your money into something like the Stock Market and having it work for you.
1. Long Term Growth
The main advantage of investing into stocks is that it comes with a great long term growth potential. In generally if you invest your money into a market ETF you can make a decent return after so many years. If you follow smart stock tips and do your own research on companies then you can do even better.
2. Income
The second advantage of investing money into the stock market is that it can give you some extra income. Dividend paying stocks for instance will pay you periodically throughout the year for each share of stock that you have. If you own a lot of shares of stock after years of investing it can turn into a pretty nice income.
However saving your money has some pretty big advantages on its own.
The first benefit is that you know you will not lose your money. Stocks go up and down, if you invest your money into the market and the market crashes you lose all your money. However if you put your money in the bank it doesn’t really matter what happens in the stock market you know your money is safe.
So, what is better saving your money or Investing it? Well, it can be nice to have a little of each.
Personally I like the idea of having a grand investment account that can grow into huge wealth over time. But, it is not something that you want to start pulling money out of tomorrow. Having both a savings account which can help you with emergencies and an investment account which can benefit you in the long term can be a good idea.
