Savings or Investment: Things You Should Know

Savings or

Which is beneficial, to save it or invest it?

There’s been varying discussion as regards the better way to make more income. Is it worth saving a part of your monthly salary or it’s best to invest your money and wait for it to…make you more money?

The truth is, you are in charge of which is going to be beneficial to what you want to achieve. However, for some certain personal goals, one is going to be more suitable that the other.

Here’s a guide to know when you should stick to the safer route and save or risk more to earn bigger returns and invest

Savings – Pros & Cons

Savings is setting aside money you don’t spend now for emergencies or future purchase. It’s about putting your money someplace that you can easily get should the need arise.

Savings is income less consumption – the benefit of savings is interest. When talking about saving, it is important to realize that here are various examples of savings, and they include: putting money into a deposit account, a pension account etc.

The Pros

With savings, you are in charge of the amount of money you want to set aside. There’s ease of access to where your money is being kept. You can save and reach your goal on time as long as you adhere to the plan you’ve set. Take the total you need to save and divide it by the number of months until you need to reach your goal to find the amount you need to save each month.


In the case of an emergency, you can easily get to your money without having to make request before it gets released. Your money is at minimal or no risk when it is in a savings account

The Cons

Since you have easy access to your funds, being tempted to “touch” it will affect your goal. Savings generate little interest. If you’re only earning one percent interest in a savings account but could earn an eight percent return on investing, you’ll have to make up for that seven percent difference by putting more money in your savings account to reach your goal at the same time.

Investment – Pros & Cons

Investment is buying assets such as stocks, bonds, mutual funds with the expectation that your money will make money for you. Investments are usually selected for long term goals and the industry varies.

The Pros

The act of investing can help you reach bigger long-term goals. Investments have the potential for higher return than a regular savings account. Your investments may appreciate (go up in value) over time. This increases your net worth, which is the value of your assets minus your liabilities.

Investing is the least “active” approach to participating in the markets. It can be good for those who have an interest in the markets but don’t have enough interest in it to make it a part of their daily or weekly schedule.

The Cons

Investing is one of the slowest ways to make money. There’s a restriction to access your money. Unlike savings, you have to pass through some official liquidation processes to get your money back. The shares of a company may fluctuate so many times in just a single day. These price fluctuations are unpredictable most of the times and the investor sometimes have to face severe loss due to such uncertainty.

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Don’t Wait to Get Started

As stated earlier, the choice is yours. Whichever suits your short or long-term goals should be the pick.
However, financial experts/analyst over the years have always been on the side of investing. Investing is basically making your money make more money for you.

The longer you delay in getting starting with investing, the more money you will need to put away monthly to be able to achieve your target.


Whatever it is you want to achieve, the best time to invest is now. Setting an investment plan is as easy as ABC on African Trade Invest. You can choose between the Project and Premium investment. You can get the mobile application on the Google play store and the IOS store.

So, are you ready to start investing or want to start another investment line?

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