Financial Advisement

By: Alivia Bascue

To save or not to save?

Saving your money means putting a bit of money aside for future use. Saving can help you in the long run. You can keep it for retirement, to get through hard times, social security, personal savings, and company retirement plans. Saving risk is very low, and the return is great. You usually get some interest, if you have a savings account. The liquidity is also nice. You can get your money quick and easy, at virtually any time you'd like. Keep in mind... Saving not only helps you, but it helps the economy grow.

Wait. What about investing?

Investing your money is when you use your money with the intent of gaining more. Investing is a way to either earn money, or lose money. The liquidity of investing is not very stable. You could get your money out fast, or slow. No one knows. And the return of investing is unknown, as well. You could gain or lose money. It is a minefield out in the world of investing, but sometimes, it is worth the risk.

Tips on saving:

You should try a savings account. It is easy to obtain your money at any time. The liquidity of a savings account is very high. Also, banks circulate your money around if you put it in a savings account. It doesn't just sit there, it is being passed out to people who will use it to better themselves, and then pay it back to the bank, with interest, which means you get a little extra money in the long run. It's a win-win situation. Another way to save money is to create a budget. Don't go over the budget that you set, and then keep track of all of the money that you spend. The money that is left over you can put into your savings. You should also save up for your kids. They are expensive, and you'll want to save up for their educational funds, and other things that they will want to do that includes money coming out of your pocket.

Tips on investing:

When you are thinking of investing, you should probably come to facts with the risk that comes with it. You need to put your money into something that you know will gain money, that way you will also gain money. You need to have diversification when investing in mutual funds. This way, you're reducing the risk that a poor performance by any one of the businesses will wipe out your savings. Also, be on the watch for those bear markets. You know, the bad periods of time for the investors because the stock prices have dropped. You'll do fine, though. Good luck!