It really depends. Have a go at the following questions:
– Do you have savings that you can draw on in an emergency?
– Are you on the housing ladder OR not saving for a house?
– Do you have a stable job where you can afford to put money into a regular investment or savings plan each month?
– Do you have a certain amount of money left over at the end of the month that you can set aside for the long-term?
If all your answers are ‘yes’ than you should seriously consider investing in the stock market. It sounds scary but your money is probably going to grow more impressively in the long-term if it is invested in a well-balanced, diversified portfolio compared to a bog standard savings account, where interest rates have been rubbish for some time now.
The stock market has time to ride out the peaks and troughs of the stock-market so if you stick in there for at least five years, you have a reasonably good chance of cultivating decent returns.
One thing to bear in mind; there are no guarantees when investing in the stock market. You’re never absolutely 100 per cent certain that you will get back what you put in. You’re taking a risk by investing in the prospects of companies, markets and entire regions; here at Boring Money, we would argue that you have to be in to it win it over the long-term but it’s your call entirely.
If the answers to the questions above are ‘no’, then you should probably concentrate on either building up emergency savings in a decent savings or current account, finessing your credit rating or possibly saving into a cash-based Help to Buy ISA to get ‘free money’ from the government. Additionally, if these savings are to fund a goal over the next 2-3 years then the stock market is not such a great idea. If things fall off a cliff, you do NOT want to be a forced seller in down turns. That’s how you lose money.