Saving money Vs Investing Money is a question that every Australian has to ask themselves. Saving vs Investing is a daunting question, however, it can be simplified by understanding that they are basically stepping stones from one to the other. Before you start to invest you have to learn how to save.
Just like you have to learn your ABC’s before you learn to read. Knowing how to save before you start to invest ensures that the more money you make through investments, the more money you can save. Saving vs Investing? Saving money in the right account is a good way to start your investment journey. Choosing a high-interest account to save your money means that you will receive a good rate of return on your savings. For example, if you have $4000 dollars sitting in your everyday bank account doing nothing, then you will generate zero interest. However, if you move that money into a high-interest account you could earn up to 4% per annum on your savings, or $160 per year. Investing in property is the next logical step in Australia, as our property market is quite stable. You will receive a return on your investment through rent or a rise in the market. From the property market, you may want to branch out into shares; a financial advisor can assist you with this. Shares will give you a return through dividends and a rise in stock prices. Whatever you choose to do with your money it is always a good idea to set up a serious savings history with a bank first.
This way your credit history will reflect the type of financial stability that you have and give you more options when it comes to the question of saving or investing.