Saving and Investing

Saving and Investing

1. Saving : income that we choose not to spend

2. Investing: putting money aside in order to get a better return on it in the future

3. Factors to consider when saving or investing

   • Risk : will your savings be safe and secure? Money saved in a licensed financial institution is far safer than money kept in a drawer or even a safe at home
   • Liquidity : Is it easy to withdraw or access your savings should you need to? That is, how quickly can it be turned into cash
   • Taxation : tax on your interest ex. DIRT:
   • Reward: will the savings earn interest
   • Convenience : is the account convenience for making regular lodgement