It depends on your time horizon and risk tolerance. Savings is safer short-term; investing may help long-term but can drop at the wrong time.
Compare ETF vs Savings outcomesShort timeline (1–3 years): savings is often safer. Longer timeline (5+ years): investing may be more reasonable if you can tolerate volatility.
Markets can drop sharply. If you need the money during a downturn, you might be forced to sell at a bad time.
Run two scenarios: a conservative savings rate and a conservative ETF return rate. Compare the difference, then ask: “Is the potential upside worth the risk for my timeline?”
Not always. It can be reasonable for longer horizons, but it’s risky if you need the money soon.
Many people prefer 5+ years when investing for a goal, but it depends on volatility and your flexibility.
Often yes: keep a safe base in savings and invest a smaller portion if your timeline allows.
Great — rerun the comparison. The point is to test scenarios.
See /how-compound-interest-works.html.