--- title: Should I save or Should I invest? - Money Mata's Blog description: Investing can be much more rewarding, than just beating inflation, if a long term view is taken. One can use a wide range of investment solutions to put his money at work. image: https://www.financialplanningindubai.com/hubfs/Imported_Blog_Media/money-at-work-2.jpg --- [![Financial_Planning_in_Dubai_logo](https://www.financialplanningindubai.com/hs-fs/hubfs/Financial%20Planning%20in%20Dubai%20Logo_9090-2.png?width=90&height=90&name=Financial%20Planning%20in%20Dubai%20Logo_9090-2.png "Financial_Planning_in_Dubai_logo")](https://www.financialplanningindubai.com/?hsLang=en-gb) - [Home](https://financialplanningindubai.com/) - [Blog](https://www.financialplanningindubai.com/blog) - [Services](https://www.financialplanningindubai.com/services) - [Islamic Investments & Takaful Plans](https://www.financialplanningindubai.com/blog/salama-hyat-plus-takaful-plan) - [Medical Insurance](https://www.financialplanningindubai.com/blog/topic/medical-insurance) - [Free Resources](https://www.financialplanningindubai.com/free-finanical-tools) - Tools - Calculators - [S&P 500 Investment Calculator](https://financialplanningindubai.com/sp-500-investment-calculator/) - [Life Insurance Calculator](https://www.financialplanningindubai.com/life-insurance-calculator) - [SIP Calculator](https://financialplanningindubai.com/sip-calculator/) - [Lumpsum investment calculator](https://www.financialplanningindubai.com/lump-sum-investment-calculator) - [Inflation Calculator](https://www.financialplanningindubai.com/inflation-calculator-uae) - [Net-Worth Calculator](https://www.financialplanningindubai.com/blog/free-personal-balance-sheet-template-networth-statement) - [The Best Budget Planner for Expats](https://www.financialplanningindubai.com/expat-budget-planner) [Book A Discovery Call](https://www.financialplanningindubai.com/meetings/damodhar?hsLang=en-gb) # Should I save or Should I invest? - Money Mata's Blog ![Damodhar Mata](https://app.hubspot.com/settings/avatar/e63bc971ec29ebe6c012fd042c1a8215) [Damodhar Mata](https://www.financialplanningindubai.com/blog/author/money-mata-aka-damodhar-mata) 24 Jan 2018, 19:49:03 ###### [Investments](https://www.financialplanningindubai.com/blog/topic/investments) # How to build wealth in Dubai? When people want to save money, they usually put their net disposable income into a bank account so that it grows into a sizeable capital. These funds can be used to achieve financial goals like; property investment, funding for children's college education and retirement, etc.... While their money is relatively safe, the bank only pays a minuscule rate of interest. Not only the returns are limited, they never keep pace with the rampant inflation, decreasing the purchasing power of your money saved. ![Robert G Allen](https://www.financialplanningindubai.com/hs-fs/hubfs/Imported_Blog_Media/robert-allen-3.jpg?width=600&name=robert-allen-3.jpg) Although putting money in a savings account is a sure bet, your gains will be minimal, given the extremely low-interest rates. But don't forgo one altogether. A savings account is a reliable place for an emergency fund, whereas a market investment is not. Learn more about investing, read my article - [How to invest money in UAE, using 3 Bucket Investment Approach…](https://www.financialplanningindubai.com/blog/how-to-invest-in-uae?hsLang=en-gb) ## Effects of Inflation Banks in UAE offer interest rates between 0.50 % - 1.75 % on different types of savings accounts, while the inflation is around 4% - 5%, the purchasing power of your savings decreases by 3% - 4% every year. For Eg If you have a deposit of AED 100,000 in a bank, earning 2% interest, by the end of the year, the account value would be AED 102,000. If we assume an inflation of 5.00 % per anum, you would need AED 105,000 next year, to buy goods or services, currently valued at AED 100,000/-. Which means you will have to shell out an additional AED 3,000/- next year to buy same value of goods or services. ### The following video will explain, inflation better; ## How to beat inflation? The best way to beat inflation is to put your money to work, instead of you doing all the work for money, i.e.,; **Investing.**   ![How to build wealth in Dubai? - Put your money to work.](https://www.financialplanningindubai.com/hs-fs/hubfs/Imported_Blog_Media/money-at-work-2.jpg?width=800&name=money-at-work-2.jpg) The secret to building wealth is putting your money to work. Investing can be much more rewarding, than just beating inflation, if a long term view is taken. One can use a broad range of investment solutions to put his money at work. Investing in a portfolio of multiple asset classes like; Equities, Bonds, Mutual Funds, ETFs, Commodities and Real Estate can potentially grow your investment by 10% - 12% average, helping you beat inflation. ## Investment Planning When looking to invest, it is important to consider the following; 1. Establish realistic goals & investment time frames for each goal, be sure of what you are hoping to achieve and by when? 2. Ascertain how much you can invest, and how to invest; choose between a lump-sum, or regular or a combination of both. 3. Talk to an Independent Financial Adviser, and obtain adequate information on various investment plans and the underlying asset classes. 4. Diversify your investment into 3 - 4 asset classes 5. Strike a balance between safe and riskier investment, depending on your risk appetite 6. Monitor and review your investment regularly with your financial adviser, and make necessary changes, to adapt to the market fluctuations. 7. Your investment will not only beat inflation but will also help you achieve your future aspirations. Investment Plans like, [Investor Advantage](https://www.financialplanningindubai.com/blog/metlife-investor-advantage-review?hsLang=en-gb)and Investment platforms like Ardan can help you invest your disposable income efficiently and beat inflation, which savings account in a bank cannot. To know more about investing to beat inflation and to help you achieve your financial goals, call me on +97150- 2285405 or register to arrange a free initial meeting. [![Click Here to Arrange a Free Consultation](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/2672634/3a1f3c56-7c62-45e9-be25-42598cc31533.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/2672634/3a1f3c56-7c62-45e9-be25-42598cc31533) ![Damodhar Mata](https://app.hubspot.com/settings/avatar/e63bc971ec29ebe6c012fd042c1a8215) [Damodhar Mata](https://www.financialplanningindubai.com/blog/author/money-mata-aka-damodhar-mata) Author, Blogger & Independent Financial Advisor. My goal is to give you actionable tools for creating passive income and building wealth. More than 10,000 expats have already used my ideas to jumpstart their journey towards financial independence. Connect with me to start yours... Share this article on [mailto:?subject=Check%20out%20Should%20I%20save%20or%20Should%20I%20invest?%20-%20Money%20Mata's%20Blog%20&body=Check%20out%20https://www.financialplanningindubai.com/blog/how-to-build-wealth-in-dubai](mailto:?subject=Check%20out%20Should%20I%20save%20or%20Should%20I%20invest?%20-%20Money%20Mata's%20Blog%20&body=Check%20out%20https://www.financialplanningindubai.com/blog/how-to-build-wealth-in-dubai) ##### Read more - [The Real C-Suite – The Only Title That Matters 🏆](https://www.financialplanningindubai.com/blog/breadwinner?hsLang=en-gb) - [The Wealth Secret 99% of Investors Ignore – Will You?](https://www.financialplanningindubai.com/blog/the-iceberg-of-investing?hsLang=en-gb) - [From Risk to Reward? The Shifting Case for China Investing](https://www.financialplanningindubai.com/blog/from-risk-to-reward-the-shifting-case-for-china-investing?hsLang=en-gb) ## Further Reading [![Political Drama & Stock Markets: Should you Speculate or Stay Away?](https://www.financialplanningindubai.com/hs-fs/hubfs/financial_emotions_resized.jpeg?width=300&name=financial_emotions_resized.jpeg)](https://www.financialplanningindubai.com/blog/political-drama-stock-markets-should-you-speculate-or-stay-away?hsLang=en-gb) ###### [, BSE Sensex,](https://www.financialplanningindubai.com/blog/topic/bse-sensex)[Indian Stock Market,](https://www.financialplanningindubai.com/blog/topic/indian-stock-market)[Investor Behaviour](https://www.financialplanningindubai.com/blog/topic/investor-behaviour) ##### [Political Drama & Stock Markets: Should you Speculate or Stay Away?](https://www.financialplanningindubai.com/blog/political-drama-stock-markets-should-you-speculate-or-stay-away?hsLang=en-gb) The dance of greed and fear, orchestrated by exit polls, lost and made trillions of rupees in a... [Read More](https://www.financialplanningindubai.com/blog/political-drama-stock-markets-should-you-speculate-or-stay-away?hsLang=en-gb) [![Why NRI should invest in Dollar-denominated Insurance in UAE?](https://www.financialplanningindubai.com/hs-fs/hubfs/Imported_Blog_Media/Onada-Rupee-1-1024x1024-1.png?width=300&name=Onada-Rupee-1-1024x1024-1.png)](https://www.financialplanningindubai.com/blog/2013/07/08/nri-insurance?hsLang=en-gb) ###### [Dollar based insurance,](https://www.financialplanningindubai.com/blog/topic/dollar-based-insurance)[Investments,](https://www.financialplanningindubai.com/blog/topic/investments)[NRI investment](https://www.financialplanningindubai.com/blog/topic/nri-investment) ##### [Why NRI should invest in Dollar-denominated Insurance in UAE?](https://www.financialplanningindubai.com/blog/2013/07/08/nri-insurance?hsLang=en-gb) ### NRI Insurance & Investments in US Dollar  When it comes to NRI insurance and investment, many... [Read More](https://www.financialplanningindubai.com/blog/2013/07/08/nri-insurance?hsLang=en-gb) [![What is an index fund & why should you invest in it?](https://www.financialplanningindubai.com/hs-fs/hubfs/Vanguard%20S%26P%20500%20index.png?width=300&name=Vanguard%20S&P%20500%20index.png)](https://www.financialplanningindubai.com/blog/what-is-an-index-fund-why-should-you-invest-in-it?hsLang=en-gb) ###### [Investments,](https://www.financialplanningindubai.com/blog/topic/investments)[Index Funds](https://www.financialplanningindubai.com/blog/topic/index-funds) ##### [What is an index fund & why should you invest in it?](https://www.financialplanningindubai.com/blog/what-is-an-index-fund-why-should-you-invest-in-it?hsLang=en-gb) > Don't look for the needle in the haystack. Just buy the haystack! - [John C Bogle](https://about.vanguard.com/who-we-are/a-remarkable-history/founder-Jack-Bogle-tribute/) [Read More](https://www.financialplanningindubai.com/blog/what-is-an-index-fund-why-should-you-invest-in-it?hsLang=en-gb) *Damodhar Mata | Your Trusted Financial Advisor in Dubai* ![Damodhar Mata-7-2](https://www.financialplanningindubai.com/hs-fs/hubfs/Damodhar%20Mata-7-2.png?width=119&height=119&name=Damodhar%20Mata-7-2.png) *I can help you grow wealth, gain passive income, and achieve your goals faster and with ease. * **Top Pages** - [Home page](https://www.financialplanningindubai.com) - [Best Life Insurance](https://www.financialplanningindubai.com/best-life-insurance-dubai) - [Best Investment Plan](https://www.financialplanningindubai.com/blog/how-to-invest-in-uae) - [Retirement Planning in the UAE](https://www.financialplanningindubai.com/retirement-planning-in-uae) - [FIRE Early Retirement Guide](https://www.financialplanningindubai.com/blog/early-retirement-in-uae-fire-guide) - [Best Child Education Plan](https://www.financialplanningindubai.com/childrens-education-planning) **Top Blog Posts** - [Financial Planner or Financial Advisor?](https://www.financialplanningindubai.com/blog/financial-planner-or-financial-advisor) - [How to find the Best Financial Advisor](https://www.financialplanningindubai.com/blog/best-financial-advisor-uae) - [Win With Money Challenge](https://www.financialplanningindubai.com/blog/30-days-win-with-money-challenge) - [FIRE guide for expats](https://www.financialplanningindubai.com/blog/early-retirement-in-uae-fire-guide) - [Pay Yourself First](https://www.financialplanningindubai.com/blog/how-expats-in-uae-can-grow-wealth-using-pay-yourself-first-strategy) - [Google Reviews](https://www.financialplanningindubai.com/testimonials-financial-advisor-in-dubai) **Other pages** - [About us](https://www.financialplanningindubai.com/about-us) - [Testimonials](https://www.financialplanningindubai.com/testimonials-financial-advisor-in-dubai) - [Services](https://www.financialplanningindubai.com/services) - [Contact us](https://www.financialplanningindubai.com/contact-us) --- © 2024 Financial Planning in Dubai. 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