What to do with savings
While you should keep some cash for your immediate needs and emergencies, most of your savings should be channeled into some form of investment in order to grow.
There are two major types of investment-those that are almost risk free(but will not make your money grow much) and those that carry some element of risk (but also have the potential to provide you with high returns). For the purposes of this blog, we will concentrate on the first, savings type investment here, More high risk investment will be dealt with in the following chapter, Making Your Money Grow.
All financial experts will tell you that the most practical and effective way of ensuring that you have enough to look after your needs at different points in your life is to place your money in different types of investment. Diversification gives you both security as well as the benefits (eg: high returns) of higher-risk investments.
Please have a look at my next posts on the investment vehicle that being offered around.