While saving means setting aside part of today’s money for tomorrow, investing means putting your money to work to potentially earn a better return over the longer term. Different class of investment assets – cash, fixed interest, property and shares – typically generate different levels of return.
One way to help outpace inflation - and generate positive ‘real’ returns over the longer term - is by investing in assets that are not just capable of delivering higher income returns but also offer the potential for capital growth.
The return on your investments might be used as a source of regular extra income for day-to-day living. Or you might choose to reinvest the money to further grow (or compound) your wealth. Depending on your appetite for risk the benefits of investing can mean having more than some ‘rainy day’ cash.
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