Saving money can help you become financially secure and provide a safety net in case of an emergency. Without money put away in savings and/or investments, you open yourself up to other risks as well. For example, not having enough money to pay for an emergency home repair may cause you to take a loan out that your savings might otherwise have covered.

Saving money is a great place for individuals to start, or continue, to work on their finances. Using money that you’ve set aside to pay for unexpected expenses or to make a large purchase can help you avoid debt. Also, saving for long-term plans like college or retirement can give you peace of mind. There are many different reasons to save and a variety of ways to do it. You could save money by putting it into an investment account or pension account.

The goal is the same. You are putting money aside so you can grow your account into a larger one for more spend in the future, but the difference between saving in investments vs traditional savings account is that it’s not as accessible and therefore should be used for goals that you have for your more long-term future.

Your financial goals will depend on your own wants and needs. These are goals that help you focus on the bigger picture and prepare for the future. This could be paying off your car, saving up for a new home or rental property deposit or reaching your financial freedom amount.