Saving vs Investing – isn’t it the same thing?

07 May 2020

Saving money We often use these two terms to signify the same thing. Putting money away for retirement or for a goal. They are in fact, two separate actions and both should be used to secure your financial wellbeing.


We tend to save for purchases or emergencies. It is a short-term goal and generally has a low risk. We save to keep our money safe and not necessarily make it grow.

    • Saving for travels or a vacation
    • Saving to purchase an item such as a new tv or car
    • Saving a deposit for a home
    • Saving to have money in case of emergencies like a car breakdown

With saving, we can set definite targets and goals and create a timeline. Your money is fluid and you can access it over the short-term. There are generally no withdrawal or admin fees involved. 
e.g. You want to take your wife on a cruise next year that will cost around £4000. You have 14 months to save for it. That is 14 equal payments of around £286 a month you will have to save to pay for it. 


Investing is saving long-term with the goal of growing your money. 

    • Investing to grow a retirement nest egg
    • Investing to grow and build wealth
    • Investing for a business venture
    • Investing to buy property

With investments, we can still set targets and goals, but these are based on past market performance and there are no guarantees. It is a higher risk, but you could potentially earn higher gains. Investments are long term and designed to weather the volatile markets over time. It is based on compound interest accumulation, so the longer you invest the better.  

Your money is not fluid, and you can only access it once the investment period is over e.g. when you reach retirement age of 55. It is always advisable to start as early as possible when investing for retirement. (parts taken from Investopedia)

It’s all about having a good balance between saving and investing e.g. imagine having a solid nest egg saved up for retirement but no fluid cash available to enjoy holidays or buy a new tv or vice versa.

Your deVere Acuma adviser will assist in tailor-making a balanced savings and investment plan according to your individual financial circumstances. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.