People at This Age Often Say to Themselves:

The risk is too high. I will lose my savings.

We often choose the security of a bank deposit where the amount is guaranteed. However, we don’t take into account a very important factor, i.e. inflation. When inflation is high, it has an impact on the time value of our money and reduces their purchasing power. When a deposit interest rate is lower than inflation rate, this results in loss of profit.
Another popular form of investment of saved funds is the purchase of immovable property. However, the following information is required to manage such an investment:

• How much the value of the property will increase with time?
• What will the monthly rent be and whether it is possible to receive it at all times?
• The amount of maintenance and refurbishment costs, taxes, fees, etc?

In case of real estate market instability we can find ourselves in a situation in which we have an investment with considerably lower value that cannot be sold. 

Remember that in order to reduce risk you should distribute your savings in different assets. If you consider yourself a conservative person regarding risk, why would you put all your eggs in one basket?

The period is too long, and my savings should be available when I need them.

It is a common misconception that the funds invested in financial instruments cannot be used for long periods of time. In reality, the liquidity rate of such investments is much higher in comparison to some traditional savings means.

Do you know that savings are placed in a short-term bank deposit for 7 years on average. At the same time this is the recommended time limit for investments in financial instruments.

The funds will be used for future purchases/ to cover liabilities.

Come to think about it. We take out a bank loan to meet current needs - buy a car, a residential property, refurbishment, travel, etc. Saving is a type of deferred consumption, funds put aside for emergency situations or in order to maintain the same living standard over the years.

Imagine a situation in which you urgently need funds, and due to your financial situation you are not eligible for a bank loan. You don’t have any savings either, because you used them to repay current liabilities instead of investing them to increase their value.