invest vs saving up which would you choose?
By Josie
@Iamsopia (186)
Makati, Philippines
September 29, 2016 11:03am CST
we now have a lot of options to make sure our hard earned cash is secured and safe.
we can either invest it which has some risks but earns higher interest
or
put it in a bank and just save it up, it can still earn interest butnot that high...
so which would you prefer??savings,invest,moneytalk
4 people like this
8 responses
@amitkokiladitya (171936)
• Agra, India
29 Sep 16
This is a most genuine question we often face
But if u ask my opinion I would rather keep it safe in bank as a fixed deposit rather than putting it at risk so as to earn a small profit
1 person likes this
@yukimori (10143)
• United States
29 Sep 16
@Iamsopia There are different options for investments based on your risk tolerance. You can choose a conservative portfolio that's designed to preserve your capital and give you modest returns, or if you're investing for the long term (such as retirement) you can have an aggressive portfolio that may lose value in the short term but will likely see large increases down the road.
Plus there are options to rebalance your investments if the account isn't giving you the returns you want, so you're not locked into losing money if the investments you've made aren't working for you.
1 person likes this
@yukimori (10143)
• United States
29 Sep 16
We use a combination of the two as that's what works best for us.
Money that we're saving for specific purposes such as an emergency fund or vehicle maintenance fund is kept in one of our savings accounts. This allows it to be readily accessible when we need it, but it's still set aside so it doesn't get spent. Two of the accounts pay extremely high interest (5%), so it's extremely worthwhile for us to use those particular accounts. If we were to go through our regular bank instead, we'd have a savings account that doesn't even pay half a percent interest per year.
Aside from that, we also have retirement accounts that we contribute to from every paycheck. My husband's includes matching funds from our employer, so he's basically earning an extra 4% per year just by having that account. I'll qualify for the match in November, since that's my one year anniversary, and then I'll be getting an extra 4% deposited along with my contributions too. I also have an IRA and a small investment account through Acorns.
Really, it's about having a mixture of accounts that works best for you and helps you achieve your financial goals.
1 person likes this
@yukimori (10143)
• United States
29 Sep 16
@Iamsopia It's taken me entirely too long to get to this point, though. 
I'm hoping I can teach our kids how to manage their money way better than my parents taught me... then again, that's a low bar to reach because my parents didn't actually teach me anything about managing money. 
I'm hoping I can teach our kids how to manage their money way better than my parents taught me... then again, that's a low bar to reach because my parents didn't actually teach me anything about managing money. 1 person likes this
@snowy22315 (170653)
• United States
29 Sep 16
Well I think the goal is to do a bit of both, if you can afford to. With the interest rates being so low now, chances of making a lot of money saving, are not too good.
1 person likes this
@shivamani10 (11038)
• Hyderabad, India
29 Sep 16
No man of the age of 60 will desire to lose money taking a risk with greedyness.
1 person likes this
@rina110383 (24495)
•
30 Sep 16
I always go for savings. I can't afford to lose my money because of the risks attached to investments.
1 person likes this
@Aishwarya11 (32)
• Mumbai, India
29 Sep 16
i prefer both savings and investments.......especially investing in mutual funds, gold and real estate as well
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