Putting your money to work.

If you have your everyday expenses under control, you might be wondering whether you should start investing.

Investing means using some of your money to buy things that make more money – assets. You're making your money work for you. But investing comes with the potential for both gains and losses. And the value of your investments can go up and down. Learn more about investment risks.

So why would anyone risk their money in an investment when it could sit safely in a savings account? Because over time, the money you make from your investments adds up. That steady accumulation can dramatically grow your wealth, allowing you to have more money and more choices in the future.

What do you want to achieve?

How you invest will be guided by your current situation, your personality, and what you want to achieve. If you are comfortably well-off right now and your future is secure, you may not want to make any changes to the way you manage your money.

But you might have goals for the future that are out of reach right now - like travel, a comfortable retirement, or debt-free tertiary study for your children. Saving is one way to hit those targets, and it is less risky than investing. Investing, on the other hand, carries more risk, but it can also grow your money much faster than saving.

Short-term money goals

If you might need to access your money soon, or you're building up a rainy-day buffer account, saving could be a better choice than investing.

But if you're hoping for a holiday next year, a wedding in two years, or university fees three years from now, these are all relatively short-term money goals when it comes to investing. By using investments designed for a short time period, you can build up your funds quicker than simply by saving alone.

For example, a term deposit investment might mean your money is locked in for two years, but it's likely to pay a much higher rate of return than a basic savings account.

Long-term financial security

Investing can be useful for short-term goals, but the effects are more impressive over a longer period. When you stick with an investment for many years, your gains can make their own gains – they compound. That's when your money is working its hardest.

Compounding returns on investment can dramatically outperform your savings ability. The earlier you start investing, the more time your money has to accumulate.

Well-chosen investments that suit your individual needs are a way to set yourself up for a brighter financial future. Investing can give you financial security and build your wealth for the years ahead.

KiwiSaver is an example of how investing can grow your wealth – helping you maximise long-term gains because it's hard to withdraw your money.

Managed funds are similar to KiwiSaver however you can take out your money at any time.

Living well in retirement


By investing money during your working life, you can put yourself in a stronger financial position for your retirement. Income from your investments can give you extra money to top up your superannuation.

Try plugging some numbers into a retirement planning tool to see whether you're on track for the type of retirement you'd like to enjoy. If you find there's a shortfall, investment is one way to bridge that gap.

Setting aside some money to invest now is a way to make sure you're taking care of your future.

Next steps.

Talk to an expert

Call a Westpac Financial Adviser to discuss your investments needs.

Call us on 0800 942 822

Investing in Active Series

Find out more about this investment option.

Learn more

Investing in KiwiSaver

Find out more about this investment option.

Learn more

Things you should know.

The material on this webpage is provided for information purposes only and is not a recommendation or opinion in relation to investments.