Saving vs Investing – What’s the better deal?

Saving vs Investing – What’s the better deal?

To save or to invest – that is the question

If you’re just starting out on your career, the question arises – should you save or invest to realize your financial dreams? Books like “Rich Dad, Poor Dad” tell you that you should be investing straight out of the gate to make your money work for you. That is why it's important to know the pros and cons of each option

Utopian Global would love to give you value based information so that you understand and make better decisions when it comes to your personal finance. Valuable information that starts from reading a Blog post like this to get an idea of how your money could grow. 

Don’t put your phone down (or shut your laptop) and read this article to the end. We promise you’ll get some value if you’re just new to investing.

Before we get started, what’s the difference between saving and investing?

How do you know when you’re saving and when you’re investing? The key difference lies in whether your money is providing you with returns. If you’re keeping your money in a low interest fixed deposit or you’ve stacked it away in your cupboard, you’re saving your money. 

 On the flipside, if you’ve decided to buy shares, stocks, options, real estate or buy cryptocurrencies in the hope of earning some dividends or returns, you’re investing. 

Utopian Global checks both boxes when it comes to investing by allowing you to earn up to 30% returns combining real world physical asset trade using blockchain technology through the CASHETS™ ERC-20 token. 

Let’s start with why you should ALWAYS save

Investing can look exciting. To be the lucky speculator who makes a 1000% return on their money is every serious and casual investor’s dream. However, we think a great start to your financial journey begins by saving part of the money you are earning in Gold as a hedge against inflation before considering investing. 

Keep in mind that the regular lifespan of any person is always prone to some sort of illness or emergency that requires accessible cash in bulk. The great thing is that Precious Metals can be cashed in at any time anywhere in the world. Not so easy with FIAT as some countries may not accept your FIAT currency. 

Start by keeping a portion, if possible 10% of every salary you earn away. Even if you don’t have enough for a proper deposit, it’s still okay. The act of putting away cash for the future into a safe heaven is what counts here. Remember Gold can never go to zero, yet FIAT Currency can. 

Also, remember to be realistic with how much you can save. Note down your monthly budget and see if you can cut down on your expenses. What’s important here is to save the same amount each month. 

Pro tip: Go one step further and try to identify your high and low expenditure amounts for the year. You may spend a lot during the months of special celebrations or holidays. 

Take all information into account and budget your percentages for savings each month.

You’ll land up with a more accurate figure of how much you can save and if you’re lucky, it’s higher than the number you had when you saved the same amount each year. 

Examples of Savings: Physical Gold and Silver in Utopian Global either held in the Refinery Argor Heraeus or the private vaults of Loomis International or shipped to your doorstep. 

When you’re financially stable after saving, you can invest

Now you’re confident that you have enough put away for emergencies and will continue to add on to it. This is where investing comes into play. You can start by putting up small amounts. Saving first is important because you now have a base of funds to invest from and can build a diversified portfolio for example through CASHETS Infinity Vault. 

Examples of investing: CASHETS™, Bitcoin, Stocks, Bonds, Mutual funds, Exchange traded funds (ETFs)

Saving – Pros 

  1. It’s an easy and risk-free way of accumulating cash quickly. Learning how to budget can be a huge help in improving your saving game
  2. You’ll know upfront how much interest you’ll earn on your deposit
  3. You’re not exposing your money to any substantial risk.  

Saving – Cons 

  1. You’ll gain less money on your deposits, which means if you have major financial goals lined up, they’ll happen much more slowly than you may expect. 
  2. It’s possible that you could lose the value of your earnings to inflation if you save in FIAT Currency. 

Investing – Pros

  1. You’ll earn much higher returns when you invest. There’ll also be a variety of options to invest in with varying degrees of risk and return.
  2. You can diversify your investments and earn a higher return for relatively lower amounts of risk.
  3. If your returns are high enough, you won’t have to worry about inflation eating into your returns.
  4. You can always rely on experienced investors to create a well managed portfolio for you.

Investing – Cons 

  1. You could lose some or all of your capital invested.
  2.  A portion of your gains could be lost in brokerage or consultancy fees.

Saving vs investing – Who wins?

After reading through this blog, everyone may feel one way or the other. There’s no exact answer for all prospective investors and it all comes down to your particular financial circumstances. 

What do you need to achieve for yourself financially in the next five years?

 If those goals require larger savings than you are capable of accumulating, investing prudently (After saving) may be the way to go. If not, saving set amounts should do the trick. 

If you’re looking to invest in real assets brought to you through the power of digital tokens backed by real physical assets and secured on the Ethereum blockchain, Utopian Global stands ready with the CASHETS™ Infinity Vault to help you secure your financial future with potential returns up to 30%.

Pro Tip: Your investment in CASHETS™ is 100% callable giving you comfort and ease.

Disclaimer: None of the information contained here constitutes an financial advice, offer (or solicitation of an offer) to buy or sell any product or to make any investment, or to participate in any particular strategy.

Utopian Global does not take into account your personal investment objectives, specific investment goals, specific needs or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here. The information and publications are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Utopian Global.