Is it better to save or invest? | The difference between saving and investing my money.

 How to nearly quadruple $10k rather than lose half its value:

Firstly, let's go over the numbers:

If you kept $10,000 in savings over the next 20 years, based on the average inflation rate of 2% (currently much higher than this), it would have a purchasing power of $5,536.

If you invested $10,000 over the next 20 years, with an average return of 8%, you would have $46,000.

Considering the average inflation rate of 2%, this would have a purchasing power of $30,956.68.

A difference of $25,420 between saving Vs investing $10k.

These numbers are based on decades of averages.

Although there is a risk with investing, there is much more considerable risk with doing nothing and letting inflation destroy your savings and future income.

Here's what to do:

1) Ensure you have an emergency fund of at least 3 months outgoings.

2) Have savings set aside for any significant expected future outgoings.

3) Any additional savings you have that you are unlikely to need access to for the next 5+ years, you can then choose to invest.

Here are the steps to invest:

1) Choose an SEC and FINRA-regulated platform (essential)

2) Pick investments suitable to your situation, experience and risk tolerance.

Some investments can be managed on autopilot and are suitable for complete beginners.

3) Invest a lump sum you are comfortable with and then regular monthly amounts.

4) Continue doing the regular amounts automatically each month.

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