Without a doubt, saving is a fundamental aspect of our financial lives. If you want your earnings to go further, you first need to save. However, saving by itself is a futile attempt to grow your money; at some point, it becomes a choice between being stuck midway through your goal or taking the next step that is, making investments.

Of course, the latter would mean taking risks, and not all risks pay off in the end. That, however, is all part of it; sometimes, you have to lose some to gain more.

When You Should Save and When You Should Invest Your Money

In case you are not convinced why to let us give you a few reasons why just keeping all your money and savings in your bank accounts is not exactly a great idea:

  1. Because your savings won’t grow on their own.

Let’s state the obvious: the money hoarded in your piggy banks or bank accounts will not multiply by themselves. So once you have saved enough, the next step should be investing. Of course, not everyone makes the right investment.

Not all of us is fortunate enough to make the wise investment at first try; sometimes, it would take you a few failed attempts. The point, however, is not to give up and to learn from your failures to make better decisions next time.

Many fear the advice “make investments,” mainly because it dealing with stocks is mostly associated with it. This, however, is a common misconception; investments come in many forms, not just in stocks. Education is one, and it is one that no one can take from you.

The properties you own and the different insurances you pay for are also investments. Of course, you can also consider mutual funds or start your own business.

  1. Because you have to think long-term when purchasing.

Speaking of investments, the things you purchase are also investments of some sort. Just how good of an investment they are depends on their quality, durability, longevity, warranty, etc. relative to their price.

That is why, when you go shopping, going for the cheapest ones is not always a bright idea. Remember this when you go shopping for things that are expensive in the first place such as furniture and electronics.

Retirement Savings – Best Investments for Lazy Investors

We are not saying that expensive, high-end items are always the best; we are simply saying that in some cases, the cheapest is not always the best, reliable options.

Thanks to the Internet, comparing different products/services from competing brands and reading reviews are easier to do today.

When You Should Save and When You Should Invest Your Money

  1. Because of that thing called inflation.

Your savings might be safely kept in the banks and your cookie jars, but they are not safe from the ever-changing value of money. Currencies depreciate, and the value of the money left uninvested go down with them. Naturally, this also means less purchasing power.

Not to scare you from saving, but just imagine the worst case scenario of the currency of your savings dropping dramatically. Picture your $500 turning into $300; that is already $200 worth of losses, almost half of the total. Saving alone does not seem exactly stable and safe now, does it?

  1. Experience

No one is encouraging you to splurge all your savings and money on your every whim. However, treating yourself once in awhile is not the only good way to rest, unwind, and distress; giving yourself a break from work, careful budgeting, and thrifty spending can also offer experiences that will not only help you out regarding motivation and psychological balance but your growth as an individual.

Remember, life is not just composed of your job. You also have to attend to the other aspects of it and to keep a balance.

After all these, you might start thinking that you should stop saving altogether. Do not get the wrong idea; saving is important, and we all need to do it especially at first. The point is that you need to know when to stop saving and when to start investing.

To help you out, let this checklist remind you of the things you should save for as well as some instances wherein you will also need to do it.:

  1. Emergency Savings

Everyone needs to have emergency funds, and many financial advisors suggest having at least enough to live off it for 6 months. Once you secure sufficient amount for at least, that’s one thing to cross out your checklist. Do note that having them is even more crucial in case you are about to be unemployed and/or will not be working for a while.

How much you will need for emergency savings would depend on your circumstance. Singles would usually need less, and it so follows that those with families will need a lot more, about the number of family members (especially dependent members). If you are the head of the family or the main or sole provider, it’s another reason to put emergency savings up your priority list.

  1. Retirement Savings

Like emergency, this is also another important item on this checklist. If you want to ensure a comfortable life for the future you, then make this one of your priorities, especially while you are young, at the height of your career, and/or earning big.

Retirement Mistakes To Avoid During Financial Planning

Recommend0 recommendationsPublished in Savings
Previous article5 C’s? How About the 6 F’s – Goals Every Woman Should Have?
Next article5 Tips for Expats Moving or Travelling To Singapore with Pets
Founder @ The New Savvy
Anna Haotanto is the Advisor (former CEO) of The New Savvy. She is currently the COO of ABZD Capital and the CMO of Gourmet Food Holdings, an investment firm focusing on opportunities in the global F&B industry. She is part of the founding committee of the Singapore FinTech Association and heads the Women In FinTech and Partnership Committee. Anna is the President of the Singapore Management University Women Alumni. Anna invests and sits on the board of a few startups. Anna is also part of the Singapore Chinese Chamber of Commerce & Industry Career Women’s Group executive committee. Anna’s story is featured on Millionaire Minds on Channel NewsAsia. She hosts TV shows and events, namely for Channel NewsAsia’s “The Millennial Investor” and “Challenge Tomorrow”, a FinTech documentary. Anna was awarded “Her Times Youth Award” at the Rising50 Women Empowerment Gala, organised by the Indonesian Embassy of Singapore. The award was presented by His Excellency Ngurah Swajaya. She was also awarded Founder of the Year for ASEAN Rice Bowl Startup Awards. She was also awarded the Women Empowerment Award by the Asian Business & Social Forum. Anna has been awarded LinkedIn Power Profiles for founders (2018, 2017), Tatler Gen T, The Peak’s Trailblazers under 40 and a nominee for the Women of The Future award by Aviva


  1. Hеllo my fгiend! I wish to say that this article is awеsome,
    great written and inclսde almost аlⅼ vital infos.
    I’d like to see more posts like this .


Please enter your comment!
Please enter your name here