Saving is usually best for short-term goals which you want to achieve in five years or less. This can include saving for special items or occasions such as a holiday, wedding or car. It's also useful to have savings which you can get at quickly in the event of an emergency or if you need access to your money at a set time. Over time, inflation can have a big impact on the buying power of your savings. To achieve potentially higher returns you might want to consider investing. Many investments involve investing in the stock market and so are higher-risk. But potentially the stock market can produce better returns over the medium to longer term than savings accounts.