Saving and Investing

By Trevor Funkhauser

Why is saving and investing important!

Many people ask why should we put our money in a savings account? or why should I invest my money? They are important because they are what helps the economy grow. Money in savings account is given as loans to people who need money while also paying back the loan they also pay interest and your money earns a little interest as well. Investing on the other hand helps companies by you investing in them so they can make new and improved products.

Why should you invest your money?

If you are in a stage in life where you have extra money and are looking to invest then this is a must read.Just like Halloween investing can be scary. That's why you should invest your money in a mutual fund, you leave investing to the pros while also investing for a higher return rate then saving. But unlike savings accounts mutual funds doesn't promise your money and the risk is high. You can also look into stocks you know, like Warren Buffet says to invest in what you know.

What about Savings!!!!!!!

Savings are a more low risk investment because the bank has up to $125,000 covered by the FDIC.With the low risk there is also low return, the return rate is around .001% but if you just want to save your money put it into a savings account and get .001% a year on the money you have. You can also put your money into a checking account which is a way to save and earn .003% interest a year. Both savings methods have a high liquidity(get your money back fast) while invest has a low liquidity.

Tips on savings and investing

Invest in what you know, don't just invest in someone who has had a good month look how they have done in a year maybe even 5 years. Also invest in stock at a young age. Savings is fairly easy, instead of hiding your money under your mattress put it in a savings or checking account and make money on the money you are saving anyways!