If you’re trying to increase your wealth, you know that unnecessary spending is not for you. However, choosing between saving and investing is a little complicated. Both can be beneficial, but one is often better than the other in a given situation. It all boils down to where you are in your life, what your goals are, and what kind of savings you already have. If you have no savings at all, then this should be your priority. Everyone should have an emergency fund they can use for unforeseen circumstances.
Saving is also a good choice if you plan a big purchase in the near future, It’s better to keep the money for a down payment in a savings account rather than investing it, because the stock market can be volatile in the short term. If your investments lose their value, you will lose that money.
You should also consider saving when you want access to your money quickly. Investing can be lucrative, but it takes time to sell your investments and get the money back into your bank account.