Savings vs Investments: What Is Best For Me?

An image of a jar containing money beside 3 stacks of coins sprouting leaves.

One important decision that many people will take is whether to save or invest their hard-earned money. The correct decision for you will depend on several factors including current assets, goals and age. In this short article, Cave & Sons will give you a brief guide to both saving and investing, allowing you to better understand which option you may wish to take, and when.

What is the Difference Between Saving and Investing?

Generally, saving involves putting money aside each month, gradually building up a significant sum of cash. You might save up for something big, like a family trip or a deposit for a home. Savings are also used to fall back on in times of need.

On the other hand, investing involves placing your money into something you believe will grow in value, such as property or shares in a company. You invest with the intention of getting more money back than you put in.


It is an unfortunate fact of life that emergencies can strike at any time, to anyone. A faulty car, lost mobile phone or an emergency trip could leave a significant hole in your finances. Therefore, it is important that everyone puts aside some money in case an emergency does happen. We recommend building up a lump sum, and continuing to add between five and ten percent of your salary each month, but of course that will depend on your outgoings.

If you are saving for something big, such as a wedding or a holiday, you may wish to budget your outgoing spending to save more. Likewise, do not be worried if unforeseen circumstances or periods of heavy spending (such as Christmas) limit how much you can save some months. The most important thing is for you to have something to fall back on.


If you have built up some savings, you may feel it is time to consider an investment. If this is the case, it’s important to look at your goals for the short, medium and long term.

Short-term goals generally refer to those you have falling within the next five years. For your short-term goals, it may be more appropriate to save rather than invest. For example, if you want to get married within five years, we recommend you save rather than invest as you may not get adequate returns on your investment in such a short time. 

For medium to long term goals, you may wish to consider investment. You could make a cash investment (such as a fixed rate ISA), where you pay money into an account and do not touch it for an agreed amount of time, thus incurring interest. Alternatively, you could invest in property, shares or commodities. If you have the means to do so, you should already be investing for your retirement.

Some investments pose a significant risk. You are not always guaranteed to get a return, and you may lose money. If you are unsure, it is important to get advice when you are considering investing.

Cave & Sons are here to advise on and manage your investments.

Here at Cave & Sons, we understand that investing can be a daunting process. We also understand that some people do not have the time nor the wish to manage their own investments. However you would like to approach your investment, Cave & Sons are confident in our ability to offer you the most suitable advice and service

If you are considering an investment, please do not hesitate to contact us through our online form, or give us a call on 01604621421.

Remember that investments may fall as well as rise, you may not get back what you put in.

Key Risks: Past performance is not a guide to future performance. The value of an investment and the income generated from it can go down as well as up, and is not guaranteed, therefore you may not get back the amount originally invested. Investment markets and conditions can change rapidly. Investments should always be considered long term. This communication is for general information only and is not intended to be individual investment advice. The views expressed in this article are those of Cave & Sons and should not be considered as advice or a recommendation to buy, sell or hold a particular investment or product.

Cave & Sons Ltd is authorised and regulated by the Financial Conduct Authority (FCA),  Financial Services Register number 143715