Should you just keep saving cash or should you invest your cash into a growth asset like shares or property?
Let me try and avoid saying, "It depends, " by laying down this simple rule, if you don't need the cash for 2 years then invest it!
Obviously this doesn't apply to direct property investment as that's more of a 10 year investment, but if you want to build up an equity portfolio then often the best strategy is regularly saving and putiing it into an ETF every 3 months or so.
If you're saving for a house or you want to spend the money within a year or so, then you're likely going to be better off just putting it into an online saver. The reason for this is that you don't want to have to sell the asset at a loss when you need the money. Don't worry about missing out in gains as the gains in one year are likely not going to be significant, we're talking about short term savings here.
If you're in it for the long term and the main goal is to grow that money for a future income stream then investing is the way to go. I've already done a post on the best investment strategy so check it out.
Don't forget to follow me on Twitter @EarlyRetireAus, email me at earlyretirementaus@gmail.com or leave a comment!
Peace.
E.
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