How to invest

Should I be saving or investing my money?

When you think of saving and investing, do you understand the difference?
Let us talk you through it, in simple terms.

Man introduces himself to group

It’s important to get a handle on the differences

There are two main differences between saving and investing:

Investing means turning your cash into other kinds of investments and accepting some risk for the chance of growing your money. Saving means keeping your cash in a secure place, like an interest-paying savings account, and accepting that it probably won’t grow much and might not keep up with the cost of living (inflation).

Investing is usually for a longer timeframe. Money that you invest is generally money that you’re happy to tie up over five, ten, twenty years or more. However, lower-risk, easy-access investment funds may also provide a solution to help grow the money you may need over the coming years.

When to save and when to invest

You’re ready to invest when: 

  • you’ve paid off high-interest debts, such as credit cards
  • planned out your short-term and longer-term goals
  • thought carefully about what investing style will suit you

It’s easy to begin with regular, small payments into the investments you’ve chosen.

What money should go into savings or short-term investments?

It could be a good idea to use a savings account or lower-risk, easy to access investment fund for short-term goals, such as:

  • An ‘emergency fund’ to cope with unexpected expenses like car repairs
  • A deposit for a home you’re planning to buy in a few years’ time
  • A big event that’s around the corner – a wedding or a milestone birthday

The aim is for this money to be growing, but to be easily available if you need it.

So, what money do I invest for the longer-term?

Your longer-term investing journey starts with carefully planning the future goals that you want to invest towards, such as a career break, paying off your mortgage or retirement.

It also involves finding out about the kinds of investments that you would like to make and the level of risk that you are comfortable taking with your money.

The aim of investing is to put money into investments for years so that it can grow over time but returns are not guaranteed.

To recap

  • Savings are for your security and your short-term needs. Saving usually means keeping your money as cash, but there are low-risk, easy to access investment options that let you take a first step out of cash and into investments.
  • Investing means turning your money into investments and hopefully letting it grow over a longer timeframe.

Explore our range of investment options to find something that is right for you and your goals.

Latest articles

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 08 May 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. 

Date of first use: 1 July 2024

Doc ID: 3578139

Marketing Communication