Saving and Investing!

By Kaitlyn Murphy

Why They're Important

Saving and investing are two important keys to our economy. On key locks the money we want to save for later purposes in a safe and secure vault, the other gives us the chance to not only save, but create interest from it as well.

Saving gives banks the money they need to loan to other people. When businesses take loans, they are usually looking to build or create a new facilities that in turn produce more jobs. After those people get paid, where do you think they put their money? Right back into the bank. Other benefits from saving include helping you reach important goals, assisting you in hard times, or funding your retirement.

Investing is another important route for our economy. By putting your money somewhere that it can grow, you have higher chances for making more money. Investing boosts the economy by allowing the businesses or stock you're investing in to have the money they need to create more jobs, etc. and you in turn make money. Particularly if you invest in government bonds, it allows for the protection of our country when the government maybe needs to fund a military activity.

Saving Tips!

One important tip to remember is when planning your retirement, use the 'three-legged stool.' This consists of having a social security, company retirement plan, and personal savings. Having a social security means that when you retire, the government helps support you. It is a pay-as-you-go plan, which means that the money you pay now does not go into savings, but is used to pay current retirees. A company retirement plan, money is automatically taken out of your paycheck and put into retirement investment accounts. So by the time you retire, you'll have all that money saved up. Lastly, a personal savings account is a plan not funded by an employer. This plan is funded by the federal government and there are many types to choose from. Some advice would be to choose the plan that best suits your circumstances and meets your long-term goals.
Big image

Investing Tips!

Investing can be a risky business if you don't know what you're doing. Securities are investments that give their holders the right to receive some form of return or profit. The two most common types are stocks and bonds. People who invest in securities count on getting back the amount they investing in, plus interest. But, if the price of the product they counted on goes down, they could lose that money. This is where risk comes into the picture. So, the higher potential you have at making a reward through an investment, the higher the risk of losses. So word of advice is to weigh the risks when investing and don't always count on the potential rewards.

Big image

For Contact Info

If you would like to receive the most beneficial help in deciding on your financial choices, contact an expert. If you would like to lose your money and saved retirement funds, contact the bum on the highway curb. Use your money wisely!