If not sure whether you should save or invest, the answer is probably both. It all depends on goals and your financial situation. This guide will help to plan out your finances for short term savings and long term investment. - Difference between saving and investing : Saving - putting money aside - a lump sum. Usually save for a particular goal, like for a holiday, deposit on a house, or emergencies that might crop up. Often saving means putting your money into cash products, like bank and building society deposit accounts. Investing - taking some of your money and with the aim of making it grow, by buying things that might increase in value, like stocks, property or shares in a fund. - Who should save? Everyone who could spare extra money from their expenses should save. Rule of thumb is to have three months’ essential outgoings in an instant access savings account. This is called an emergency fund. Importan