What’s the difference between saving and investing?
Saving your money is a safe, low-risk way to build up funds for a dedicated purpose, such as a large purchase like a house, or a holiday. Savings can also assist towards providing a rainy day pot emergency fund for any unexpected outgoings or emergencies.
Alternatively, investing your money wisely and safely on the financial market, guided by industry professionals, could prove to be particularly financially rewarding. Generally speaking, this option requires minimal effort but comes with a higher risk.
The value of investments and income from them may go down. You may not get back the original amount invested.
Risk or Reward?
Although saving is a low-risk option, the growth on your money is limited to interest gained, meaning that building up funds this way is a slow process.
With investing, this could result in a much greater and quicker return on your money, but there is a strong chance that you could lose some, if not all, of your money if you do not know what you’re doing.
If done right, professional assistance can hold the key to maximising your potential profits and providing you with a sustainable source of income.
Here at Opal Wealth Management Ltd, we do things right. Our Wolverhampton based savings and investment advisers will ascertain your financial situation and relationship with money to guide you towards a more lucrative future; this will be dependent on your circumstances, needs and preferences. This will also depend on your attitude to risk and capacity for loss.