When would it be a good idea to invest your money instead of putting it in a savings account?

If the return rate of the investment is higher than the interest earned while the money is in savings, it would make more sense to invest the money in order to earn higher returns.

Answer: flexibility

retirement account

emergency fund

debt pay off

max out individual retirement account

Explanation:

This question is answered based on one's own choice but certainly investment or savings has its own merits and demerits but when to invest instead of putting it in a savings account is based on factors below

factor in one time objectives Flexibility : If you are considering to be a little flexible about achieving your objectives then you are better off investing than saving you, higher returns are made in that year except markets are bad thus objectives are delayed. work towards having a retirement account thus matching your 401 k's benefit or other workplace retirement benefit Develop a small emergency fund in the range of $400 to $1600 to ensure been above debt level. ensure debt pay-offs that is debt with high interest rates are paid off this can be set by you. your individual retirement account should be max out depends on how much you want to invest.