To save or to invest? At what point should you save your hard-earned money for the proverbial rainy day or let your money grow by investing?

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Saving and investing money have different roles to play in your financial game plan and balance sheet, according to experts. Cash also deserves respect, and the goal isn’t always to generate a return. Here are various life situations that tell you whether saving or investing is a better decision.

When saving is the default option

Saving money almost always comes before investing, as it’s the foundation upon which you build your personal wealth. Unless you’ve gotten a handsome inheritance, savings will provide you with the necessary capital to feed an investment. Without it, you might be forced to unwind your investments at the worst possible times.

Your savings should be enough to cover all personal expenses for at least six months. These include food, clothing utility bills, insurance, loan payments, and other personal expenses. Having real savings means if you lose your job, you won’t have to change your lifestyle or cave in to the pressures of living from paycheck to paycheck.

When you’ve got extra cash lying around

If you can afford to keep your funds invested for at least three to five years, then go ahead and invest. Bear in mind that investments can be volatile, and could even potentially lead to financial loss. So if you’ve got money that you won’t need immediately, especially in the next year or two, then invest it wisely.

There are quite a few drawbacks to investing that your financial state and risk appetite should be prepared for as well. Returns aren’t guaranteed, and investing can get complex that you’ll probably need some expert help to do it. Fees can also be higher in brokerage accounts and you’ll often have to pay to trade a stock or fund.

When there’s a significant expense coming up

It’s a bad time to invest if you’re paying for your semester in graduate school or need to fork out for the downpayment on a car or a house. If this is the case, it’s always better to be liquid. While saving and investing almost always comes first, paying your dues is just as important.

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The decision to save or invest is based on your own risk appetite, time frame, and many different factors. For instance, if you keep having to access money in less than a year, better keep those funds in a high-yielding savings account that offers convenience.

As the country’s first all-digital banking platform, the ING Savings Account lets you deposit via interbank fund transfers and through mobile check deposit. The secure mobile app lets you bank on your smartphone — no bank visits, long queues, and tellers. To deposit, simply take a photo of the check using your smartphone — another first in the Philippines. Banking with ING also comes with no minimum balance, no lock-in periods, and no fees.

ING now makes it easier and more convenient to save by offering a 4.0% interest rate per annum (for balance of up to P10 million) — an increase from its 2.5% rate and is over 10 times higher than rates currently offered by other savings products in banks. New and existing customers can avail of this limited-time offer from August 1 to October 31.

Built into the app is the state-of-the-art tech that allows users to open an account ideally in less than 10 minutes, as well as enjoy other features such as liveness detection, optical character recognition, and sophisticated overall phone security.

ING is a global financial institution with a strong European base, offering banking services across 40 countries worldwide through its operating company, ING Bank. In the Philippines, ING is regulated by the BSP and has been operating as a branch for nearly 30 years now. It also owns a subsidiary, ING Business Shared Services (IBSS), which supports ING’s business in locations in Asia, Europe, and North America.

For information about the ING Savings Account, visit www.ing.com.ph.

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