You begin your
wealth management by setting financial goals.
Well, that’s the
Once you’ve got
your goals listed down, you need to make sure that you choose between the
saving and the investing strategy. We’ve shortlisted two of the major factors
that help you decide which one to go for.
If you are in
for a smaller and shorter term goals, that are nearer to three or four years
down the line, then Savings is perhaps the best way to go for you, as you will
have easy access to the cash. This can include saving a holiday, wedding or
It's also useful
to have savings which you can get at quickly in the event of an emergency or if
you need access to your money at a set time.
Savings act as a
rainy day plan, and can work as a rescue mission to your wealth during times of
However, if you are planning to reach bigger long-term
goals that are at least four to five
years away, and are willing to be patient to let the money stay in the market ( it’s
not as easy to get your hands on it quickly as compared to a savings account)
then you can surely go the investment route.
Your attitude towards risk will play a major role in making this
decision. If your money is in a savings account, it’s at minimal or no risk. An investment however, always involves risk. You may lose some
or all of the money you invest. However, you will have a higher potential for
profits, which comes as an added reward for your risk.
With the threat
of inflation, and other risks involved, if you are looking into the big
picture, considering an investment is a good option for you.
such as your salary and expenses, your attitude and your goals, your age and
the other savings that you have in hand.
you need to save to invest. Not save to just save.
Written by: BALAKARTHIGA.M