Growing Your Finances through Saving and Investing

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Growing Your Finances through Saving and Investing

If you have some extra cash lying around and no idea on how to spend it, there’s no sense in hoarding it. Saving and investing money are your only two logical and legitimate options. As you probably already know, saving means letting the money slowly grow (we’ll get into this soon enough). While investing is a riskier, but potentially a highly-profitable option. Hopefully, after reading this article, you’ll be able to make a decision on what to do with your extra money, and when to do it.


Put your money aside little by little and watch as it slowly grows – this is the very essence of saving. This snail-paced way of doing something smart with your savings means a secure growth that will allow you to take certain portions here and there for things such as holidays, a new car, emergencies, and even for putting a deposit on a home. Saving money generally means putting it into cash products such as a bank, or a savings account in a building society.


calculator, coins and paper

Where saving entails putting aside parts of your earnings. Investing means exponentially growing the money you have on the side, without chipping away at your earnings. To put it simply: buying things that you think will increase in value in order to make your finances grow is called investing, and this usually includes stocks, shares in a fund, property, etc.

Saving vs. investing

Well, “saving vs. investing” title is a little bit misleading, to be truthful. The real question isn’t which of the two financial tactics you should choose. But rather how can you handle both of them. It is important, however, that you always keep in mind that saving money is more important than investing it, regardless of your situation. – the investments that you make are brave ventures into the relatively unknown, while your savings are an actual foundation of your life.

Moreover, and quite logically, investments always depend on your savings. As you can’t really invest into something without your savings to back it.

Investing and timing

Of course, investing into the wrong thing can always be detrimental for your investment venture. The true challenge here, is not only going with something that will end up successful but picking the right timing to do so.

As a rule of thumb, you should always have enough of your savings to cover all of your personal expenses. From insurance costs and utility bills, to loan payments, mortgage and trivialities such as clothing expenses and food, and all of this to last you at least 6 months! This is an important precaution, because of unexpected things, good and bad, lurk around every corner.

Investment opportunities

Top view of jar with coins

Bearing all of this in mind, every extra cent that you happen to have lying around is worthy of investing. Property is always an excellent choice, but this does take a while in order to start paying itself off and put extra money in your account.

The stock market, volatile as it is, can be very profitable, very quickly, but its high volatility means its very risky.

The best way to go is investing into something stable, like gold. For example, if you’re looking for lucrative deals, you can just contact your trusted gold bullion expert, and they will find an awesome investment that will likely pay off quickly. The idea behind this is simple, everything is always fluctuating, while the price of gold remains stable.

When not to do either

If you want to make sure that your loved ones remain covered (financially) in case of your death, or if you are struggling with debt, you should avoid saving, as well as investing; once you’ve achieved a steady cash flow there’ll be plenty of time to grow your finances.

Other than the fact that you’re aiming at growing your money by using both of the financial tactics in question, saving and investing have little in common. Pick a perfect timing, find a suitable opportunity and make sure that you can take a punch money-wise before venturing into saving or investing.

Diana Smith

Diana Smith is a full time mom of two beautiful girls interested in topics related to health and alternative medicine.

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