Saving and investing
Saving and investing are important elements of personal financial planning.
Saving involves setting aside a part of your income (if your personal situation allows you to do so) to finance major expenses, such as a vacation, a car or a home, or to build a financial reserve for unexpected events. Investing, by contrast, involves allocating money to generate long-term sustainable return. Check out The difference between saving and investing to learn more about the differences between saving and investing and get an overview of various investment products.
Saving and investing: Why and if so, how?
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When saving, it is important to look at interest rates and to understand the relationship between deposit interest rates and inflation. There are various ways to save money. What is the best savings product for you? That depends on your savings goals and on whether you need quick access to your money. These topics are explained in more detail in Setting and achieving savings goals
Once you have saved and built appropriate financial reserves, you can put your money in various investment products to build long-term wealth. You can also choose ecologically and socially sustainable investment products. It is important that you are aware of your investment goals and risk tolerance. Returns on investment products are typically closely related to their risks. Spreading your money across investment products – i.e. diversification – is an important strategy to minimize your risk. Fundamentals of investing discusses the basics of investing in more detail. Securities – shares, bonds, funds provides basic information on bonds, shares and funds, and Investment options – real estate, gold etc.deals with alternatives to securities. This includes real estate, commodities (e.g. gold), derivates and crypto assets.
