Saving and investing are closely related, and their difference is not always clear-cut. Saving means setting aside money to prepare for unexpected expenses, future purchases or simply rainy days. It suits various life stages and situations and is worth starting early. Investing, on the other hand, generally comes into play once a person has accumulated a bit more money. Investing means putting money to assets (such as shares, bonds or funds) with the expectation that they will increase in value and/or generate regular returns.
Wealth management has become increasingly important also in business. Wealth management refers to managing a client’s financial assets according to an agreed contract. For companies, it is often essential for cash management, and it also plays a growing role in employee incentive schemes. The goal of corporate and institutional investment activity may be to improve the return on cash reserves in the short term or to build up capital and prepare for future investments over the longer term.
Saving and investing can both be started early, and neither require large amounts of money. In fact, you can begin investing with very small sums: many investment funds have very low a minimum initial investment – sometimes as little as €10.