Some people are not aware of the difference between saving and investing. When you save money you put it in a savings account and it earns some interest. You will be able to get all of the money out of the account plus the interest. An investment is where you get your money to work for you. You put it into a business, house or something that you feel will give you a big return, but you risk losing some or all of the money.

There are different types of investment and some are riskier than others. All investments are high risk if you know nothing about them and so it is sensible to do a lot of research before you start Find out about the investment, how it works, the risk and the return and this will help you to understand what you might get back, how long you will have to tie your money up for and what the chances are of you actually seeing it again.

It can be worth discussing investments with someone that you know who does invest. They will be able to explain what they do, their thinking behind it and what return they tend to get. You may also like to speak to a financial advisor. They will be able to explain all of your options to you and help you to understand and risk and return. You will also be able to do research online as there are plenty of investment websites, both giving help and selling them.

You need to gather as much information as you can so that you know that you are making an informed decision. You want to be able to understand what you are letting yourself in for and all of the risks you are taking. Make sure that you do not have any regrets about your investment.

If you like to keep things safe then savings are for you. You will not have a chance of making a lot of income fro your savings, but you will not have the worry of losing the money either. If you will regret missing the riskier opportunity and are confident that you understand enough about it to want to take the risk, then do why not do it. You may regret not taking the opportunity if you do not. However, you will need to find the best possible savings account or investment, so even when you have made the decision as to whether to save or invest you then need to decide where.

By Jasmina