A Beginner’s Guide to Saving & Investing

There are many benefits to saving money. Saving money helps you become financially secure and will give you a safety net if there is an emergency. Without having money put away in savings you open yourself up to multiple risks.

Imagine you need emergency dental treatment for example? You might have to take a loan out to pay for it which will potentially result in you paying more money out on interest.


Having a healthy savings pot also offers other benefits, for example it allows you to venture into the uncharted waters of buying stocks and shares.

Saving vs. Investing


Investing money is the process of using your money with the aim of making it grow. Saving money means setting money aside in a bank account or savings account for unexpected financial emergencies.

Investments could be anything from stocks and bonds to real estate. An investment is essentially just anything the investor believes they can produce income from.


There is a huge difference between saving and investing money. You should have a place for both in your life though.  

Saving a few pounds really can make all the difference.


Saving should be part of your daily routine but for that to be possible you have to understand the time value of money. The time value of money is the concept that the money you get today is worth more than the identical sum in the future. This is down to its potential earning capacity and inflation.


Earning potential refers to the potential gains you could make from dividend payments and capital appreciate you would get from owning stocks. So £50 today is worth more than £50 in five years.

Setting financial goals and investing your money


Setting achievable financial goals is essential. Without having a target, you won’t be able to figure out the best way to get there. First, you should figure out what matters to you, what do you want to achieve? What’s within reach? What will take a bit of time?

If you have financial gols for five years or more, putting some money into investments now could enable you to earn more money with rising inflation levels.


Putting money in a bank account is a long way away from investing. Investments are a gamble, remember there are no guaranteed returns but the returns are much greater than saving.

To reduce the risk, many investors diversify their portfolio. A portfolio is a collection of investments.


Finding the right investment for you

One of the most popular investment options is a stocks & shares ISA. This is probably because you don’t have to pay tax on any stock market gains you make, which makes this investment opportunity highly lucrative.

If you’re looking to invest on a buget, a company like Scottish Friendly can help. They provide up-to-date investment news on their Facebook, LinkedIn, Youtube and Twitter channels.    


If you like what you see, you should definitely inquire further. If you open an account you should download their app.



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