Lesson 3: Should I Save or Invest?

[Nicholas] – What’s up? Good to see you again. (retro upbeat music) (ding) What if you actually
have a tidy little sum in your savings account? Should you keep it there? Or take it out and invest it? But that’s risky, right? Well, it depends on your timeline. If you’re going to need your money soon, let’s say for buying a house
in the next year or two. Or your emergency fund. Then yes, stash that cash
in a good savings account. But if you’re thinking long term about retirement, your kid’s university, or buying a home further down the road 10, 20 or 30 years from now. Then definitely invest and enjoy the growth of the stock market. (retro upbeat music) Even if you put a high
percentage of your income into a savings account. It probably won’t be
enough for retirement. Unless you’re billionaire
Richard Branson or something. In which case, [British
Accent] ‘ello Richard Branson. Thanks for stopping by. Not great. But for the rest of us, investing some of our income is key. That’s because the best savings accounts only earn around two percent interest. Or as the stock market, on
average, has earned about five percent over savings
accounts per year. You’ll never get those kinds of returns stranding your money at the bank. (retro upbeat music) Okay so bingo playing, tracksuit wearing, gray hair flipping,
future you is on board. What about right now you? Does investing mean
eating out is cancelled? Vacations and shopping too? You’re living like a monk now. Unless you want to work
until the day you die. It’s important to invest
even a small amount as early as possible for retirement. [Sad Violin] But I’m a millennial. Who graduated with a
mountain of student loan debt and even breathing the latte smells wafting from the next brunch
table over is expensive. There’s no way I could save
10 percent of my income for retirement. We hear you. I’m sorry I don’t even
know if you talk like that. We don’t want to shame anyone. We just want future you to be able to kick back some day and chill. And drink all those lattes. (slurps) (retro upbeat music) Start with a small
percentage of your income and gradually increase
the percentage over time. Even if you begin with just
one percent of your income, and grow it over time. You’ll end up in a much better place than doing nothing at all. None of that sounds too painful, does it? Surely not when you’re becoming a bigger financial genius
with every episode.

Paul Whisler


  1. Investing with Wealthsimple was my best decision in life ! Don’t wait, invest for today for a future tomorrow!

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