{"id":20968,"date":"2025-08-05T00:33:16","date_gmt":"2025-08-04T22:33:16","guid":{"rendered":"https:\/\/moneyhub.ee\/?p=20968"},"modified":"2025-08-05T15:59:32","modified_gmt":"2025-08-05T13:59:32","slug":"should-invest-stock-market-or-save","status":"publish","type":"post","link":"https:\/\/moneyhub.ee\/en\/useful\/articles\/should-invest-stock-market-or-save\/","title":{"rendered":"Should I invest in the stock market or save?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"20968\" class=\"elementor elementor-20968\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5d7efb58 e-flex e-con-boxed e-con e-parent\" data-id=\"5d7efb58\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-32d40bf6 elementor-widget elementor-widget-shortcode\" data-id=\"32d40bf6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\"><nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><\/p><\/nav><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-1e4750ba e-flex e-con-boxed e-con e-parent\" data-id=\"1e4750ba\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-a047e75 ddddf e-flex e-con-boxed e-con e-child\" data-id=\"a047e75\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-20c9d99a elementor-widget elementor-widget-heading\" data-id=\"20c9d99a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">If you\u2019re new to investing, the stock market can be a scary place to start. Read our investing in stocks for beginners guide and decide if investing is for you.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-18b94166 e-flex e-con-boxed e-con e-parent\" data-id=\"18b94166\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-13e8adb2 elementor-widget elementor-widget-image\" data-id=\"13e8adb2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save.png\" class=\"attachment-full size-full wp-image-20973\" alt=\"Should I invest in the stock market or save?\" srcset=\"https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save.png 800w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-300x169.png 300w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-1024x576.png 1024w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-768x432.png 768w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-1536x864.png 1536w, https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-2048x1152.png 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-19d502c4 e-flex e-con-boxed e-con e-parent\" data-id=\"19d502c4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-175f64b5 elementor-widget elementor-widget-text-editor\" data-id=\"175f64b5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h1><b>Should I invest in the stock market or save for the future?<\/b><\/h1><h2><span style=\"font-weight: 400;\">How to work out if investing in the stock market is right for you.<\/span><\/h2><p><span style=\"font-weight: 400;\">If you\u2019re new to the investing game, financial markets can be a pretty scary place to start.<\/span><\/p><p><span style=\"font-weight: 400;\">Seriously, knowing your investment \u2018can fall as well as rise\u2019 or that you could \u2018get back less than you put in\u2019 doesn\u2019t exactly put your mind at ease, does it?<\/span><\/p><p><span style=\"font-weight: 400;\">But there are plenty of good reasons to get involved in investing, as long as you\u2019re comfortable with<\/span><a href=\"https:\/\/moneyhub.ee\/en\/useful\/articles\/investment-risk\/\"> <span style=\"font-weight: 400;\">the risks involved<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p><p><span style=\"font-weight: 400;\">History shows us that, over time, investing wisely tends to deliver better returns than holding cash. Investing in the stock market has historically yielded higher returns over the long term compared to keeping your money in a savings account. However, remember that past performance is not a guarantee of future results.<\/span><\/p><p><span style=\"font-weight: 400;\">If you want to recover from any losses, you\u2019ll usually need to leave your money invested for a while. That\u2019s why it\u2019s essential to have a longer-term investment horizon, typically five to ten years, to weather the ups and downs of the market.<\/span><\/p><p><span style=\"font-weight: 400;\">So if you\u2019ve got an interest in<\/span><a href=\"https:\/\/moneyhub.ee\/en\/news\/special-reports\/property-investing\/\"> <span style=\"font-weight: 400;\">investing<\/span><\/a><span style=\"font-weight: 400;\">, here are a few things to help you work out if it\u2019s all it\u2019s cracked up to be.<\/span><\/p><h2><b>What are your savings goals?<\/b><\/h2><p><span style=\"font-weight: 400;\">Before deciding if investing is right for you, ask yourself a few questions.<\/span><\/p><p><span style=\"font-weight: 400;\">What are you saving for? And when do you want to achieve your goals?<\/span><\/p><p><span style=\"font-weight: 400;\">Your investment aim\u2014whether it\u2019s generating income, growth, or a mix of both\u2014will influence the strategy you choose.<\/span><\/p><p><span style=\"font-weight: 400;\">If you\u2019re putting money away for retirement or for your kids to go to college, you might not need it anytime soon, so investing could be well worth it.<\/span><\/p><p><span style=\"font-weight: 400;\">But say you\u2019re saving up for a new car or a wedding and need to splurge soon. Well, in that case, investing probably isn\u2019t right for you.<\/span><\/p><p><span style=\"font-weight: 400;\">That\u2019s because the value of an investment can rise and fall.<\/span><\/p><p><span style=\"font-weight: 400;\">So, if you want to make the most of your money, leave it in as long as possible to give it more time to grow and recover from short-term losses.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Many investment products also have a minimum investment period or amount, so it\u2019s important to consider these minimums when planning your investment.<\/span><\/p><h2><b>Understanding share prices and volatility<\/b><\/h2><p><span style=\"font-weight: 400;\">When you start investing in stocks, one of the first things you\u2019ll notice is that share prices don\u2019t stand still\u2014they move up and down, sometimes quite dramatically. This movement is known as volatility, and it\u2019s a regular part of how the stock market works. Share prices can change for all sorts of reasons, from a company\u2019s latest earnings report to significant shifts in the entire market or even global events.<\/span><\/p><p><span style=\"font-weight: 400;\">If you buy stocks on a stock exchange like the<\/span><a href=\"https:\/\/www.londonstockexchange.com\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">London Stock Exchange<\/span><\/a><span style=\"font-weight: 400;\"> or the<\/span><a href=\"https:\/\/nasdaqbaltic.com\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">Nasdaq Baltic<\/span><\/a><span style=\"font-weight: 400;\">, you\u2019re buying a small piece of a company. The price you pay for each share reflects what investors think the company is worth at that moment. But because opinions and market conditions change, so does the share price.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Sometimes, demand for a company\u2019s shares will push the price up; other times, negative news or a market downturn can cause prices to fall.<\/span><\/p><p><span style=\"font-weight: 400;\">For most investors, these ups and downs can feel unsettling, especially if you\u2019re new to investing in stocks. That\u2019s why many people choose to diversify their investments across a range of options, such as <\/span><a href=\"https:\/\/moneyhub.ee\/en\/useful\/articles\/accumulating-vs-distributing-etfs\/\"><span style=\"font-weight: 400;\">exchange-traded funds (ETFs)<\/span><\/a><span style=\"font-weight: 400;\">, mutual funds, or investment trusts. These<\/span><a href=\"https:\/\/moneyhub.ee\/en\/useful\/articles\/should-you-invest-in-stocks-or-funds\/\"> <span style=\"font-weight: 400;\">funds<\/span><\/a><span style=\"font-weight: 400;\"> invest in a variety of companies, sectors, or even the entire market, which can help smooth out the bumps if one company or sector has a bad day.<\/span><\/p><p><span style=\"font-weight: 400;\">Before you<\/span><a href=\"https:\/\/moneyhub.ee\/en\/useful\/articles\/responsible-investing\/\"> <span style=\"font-weight: 400;\">start investing<\/span><\/a><span style=\"font-weight: 400;\">, it\u2019s essential to open an investment account with<\/span><a href=\"https:\/\/moneyhub.ee\/en\/news\/special-reports\/choosing-forex-broker\/\"> <span style=\"font-weight: 400;\">a reputable broker<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p><p><span style=\"font-weight: 400;\">Take the time to verify their credentials and review the complete list of costs and fees involved in buying and selling shares, as these can affect your profits over time. Remember, past performance isn\u2019t a guarantee of future results, so always conduct thorough research before investing in any company or fund.<\/span><\/p><p><span style=\"font-weight: 400;\">Owning shares can also give you voting rights at company meetings and a share of the profits through dividends, if the company pays them.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">But keep in mind, the value of your investments can fall as well as rise, and you might get back less than you put in, especially if you need to sell shares during a downturn.<\/span><\/p><p><span style=\"font-weight: 400;\">Managing your investment portfolio involves regularly reviewing your holdings to ensure they remain aligned with your goals and risk tolerance. Some investors include bonds or other assets alongside stocks to help mitigate risk. And while it\u2019s tempting to react to every rise and fall in share prices, most people find that staying focused on their long-term aims works best.<\/span><\/p><p><span style=\"font-weight: 400;\">Finally, don\u2019t underestimate the human side of investing.<\/span><\/p><p><span style=\"font-weight: 400;\">It\u2019s easy to get caught up in the excitement when share prices are rising, or to panic when they fall. However, maintaining a calm demeanour and adhering to your plan can help you make more informed decisions and<\/span><a href=\"https:\/\/moneyhub.ee\/en\/useful\/common-investment-mistakes\/\"> <span style=\"font-weight: 400;\">avoid costly mistakes<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p><h2><b>What&#8217;s your attitude to risk?<\/b><\/h2><p><span style=\"font-weight: 400;\">Different investments carry different types of risk.<\/span><\/p><p><span style=\"font-weight: 400;\">The risk associated with each asset can vary, so understanding the type of asset is essential. And only you can decide what you\u2019re comfortable with.<\/span><\/p><p><span style=\"font-weight: 400;\">With investments, there\u2019s always an obvious risk \u2013 you may not get back the amount you originally invested.<\/span><\/p><p><span style=\"font-weight: 400;\">Over time, thanks to inflation, your money could be worth less compared to what you could get with the same amount of money today, as prices rise and the rate of interest on your cash fails to keep up. The returns on investments can vary significantly depending on the asset and market conditions.<\/span><\/p><p><span style=\"font-weight: 400;\">If you understand the level of risk you\u2019re taking, and you\u2019re happy to accept a<\/span><a href=\"https:\/\/moneyhub.ee\/en\/news\/low-risk-high-return\/\"> <span style=\"font-weight: 400;\">higher risk for higher rewards<\/span><\/a><span style=\"font-weight: 400;\">, investing could be well worth it. The profit potential is often linked to higher risk.<\/span><\/p><h2><b>Can you reduce your risk?<\/b><\/h2><p><span style=\"font-weight: 400;\">Of course you can.<\/span><\/p><p><span style=\"font-weight: 400;\">You could choose less risky investments or invest in a mix of things to \u2018spread\u2019 your risk. Mutual funds and stock funds are popular options for diversification, as they allow you to invest in a broad range of assets and help manage risk.<\/span><\/p><p><span style=\"font-weight: 400;\">Or let your bank or a stock investing app do it for you.<\/span><\/p><p><span style=\"font-weight: 400;\">They have ready-made investments that spread your risk across various types of investments in multiple countries. These portfolios are professionally managed and may include index funds that track a market index.<\/span><\/p><p><span style=\"font-weight: 400;\">Less risky. More straightforward. Managed investment products can help you manage your portfolio more easily.<\/span><\/p><h2><b>How much do you have to save or invest in stocks?<\/b><\/h2><p><span style=\"font-weight: 400;\">Investing isn\u2019t just for the super-rich.<\/span><\/p><p><span style=\"font-weight: 400;\">You can start your investment journey with just a small amount of money, or pay in a bigger lump sum if you prefer. You can purchase stocks, mutual funds, or ETFs through a brokerage account.<\/span><\/p><p><span style=\"font-weight: 400;\">Just remember that when considering how much you can afford to invest, always keep some money set aside for a rainy day. It&#8217;s also important to consider the cost of investing, including any fees, when deciding how much to invest.<\/span><\/p><p><span style=\"font-weight: 400;\">Reinvesting dividends can help you accumulate more shares over time, increasing your potential returns.<\/span><\/p><p><i><span style=\"font-weight: 400;\">You should consider investing as a medium- to long-term commitment, so be prepared to hold your investment for at least five years. Tax depends on your circumstances, and the regulations may change in the future.<\/span><\/i><\/p><p><br \/><br \/><br \/><br \/><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-adf47ca e-flex e-con-boxed e-con e-child\" data-id=\"adf47ca\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>If you\u2019re new to investing, the stock market can be a scary place to start. Read our investing in stocks for beginners guide and decide if investing is for you.<\/p>\n","protected":false},"author":3,"featured_media":20973,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-20968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-150x150.png",150,150,true],"full":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save.png",800,450,false]},"categories_names":{"21":{"name":"Articles","link":"https:\/\/moneyhub.ee\/en\/category\/useful\/articles\/"}},"tags_names":[],"comments_number":"0","rttpg_featured_image_url":{"full":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save.png",800,450,false],"landscape":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save.png",800,450,false],"portraits":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save.png",800,450,false],"thumbnail":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-150x150.png",150,150,true],"medium":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-300x169.png",300,169,true],"large":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-1024x576.png",800,450,true],"1536x1536":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-1536x864.png",1536,864,true],"2048x2048":["https:\/\/moneyhub.ee\/wp-content\/uploads\/2025\/08\/invest-in-stock-market-or-save-2048x1152.png",2048,1152,true]},"rttpg_author":{"display_name":"David Bailey","author_link":"https:\/\/moneyhub.ee\/en\/author\/davidbailey\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/moneyhub.ee\/en\/category\/useful\/articles\/\" rel=\"category tag\">Articles<\/a>","rttpg_excerpt":"If you\u2019re new to investing, the stock market can be a scary place to start. Read our investing in stocks for beginners guide and decide if investing is for you.","_links":{"self":[{"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/posts\/20968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/comments?post=20968"}],"version-history":[{"count":1,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/posts\/20968\/revisions"}],"predecessor-version":[{"id":21295,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/posts\/20968\/revisions\/21295"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/media\/20973"}],"wp:attachment":[{"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/media?parent=20968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/categories?post=20968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneyhub.ee\/en\/wp-json\/wp\/v2\/tags?post=20968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}