Saving is usually for a specific short term goal like a holiday or for unexpected emergencies like car repairs, a medical procedure or a new appliance.
Investing is generally to create wealth and to reach bigger long-term goals like paying for your child's education or investing for your retirement. You'd typically invest for a longer period of time, like 10 years, 20 years or more.
Both saving and investing are important aspects of a financial plan. But they're different tools, used for different time periods and different goals. Getting into good savings habits can build the discipline you need to invest for longer periods.
The sooner you start saving and investing, the better and also start with what you can afford.
Everyone needs to save and invest for a better future. Consulting an accredited financial adviser is a good idea as they can help you put a financial plan in place that takes your circumstances and individual needs into account.
1. Start investing as soon and as regularly as you can. The sooner you invest, the greater your opportunity to grow your investments over time. Time in the market counts.
2. Remember that investing is a long-term commitment. Don’t be swayed by the ups and downs of the stock market, and do avoid reacting impulsively. In other words, keep calm at all times and stick to your investment plan.
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