While financial terminology can be confusing for those who don’t spend their days working in the industry, knowing – and understanding – some of the basics is vital to ensure that your portfolio is diversified and your short- and long-term future is financially secure.

With this in mind, it is essential to clarify the difference between two terms that many may believe are a single practice. Equal in importance, but very different in meaning, ‘savings’ and ‘investments’ are commonly mixed up. Knowing the difference can, however, go a long way in securing your financial future.


Ultimately, saving is the short-term practice of putting money away in a safe place for use in the future – often for a goal (like a family holiday) or for unexpected expenses (such as car trouble).

Saving and investing are both important and are two great ways of making your money work for you.


While budgeting to put some of your monthly income away can seem near impossible, even the smallest amount can make a big difference in the long run. Regular deposits gradually build up ensuring some level of financial security when unexpected expenses arise. It is also a good way to pay off large expenses like holidays without taking on debt.


Investing is what builds you wealth over time.

If you are just starting out, it may be better start with the help of a professional financial advisor, who can help you gauge your personal risk appetite when choosing investments and guide you in your choices. The ultimate goal is to find the best balance for each investor, generating gains while not resulting in high levels of stress on the investor’s part.

If you are interested in savings or investment, why don’t you let us contact you.