choosing to save
what is the difference between savings and investing?
savings is the portion of current income that is not spent. investing is a purchase of assets with the goal of increasing future income
what is liquidity?
Liquidity is how quickly and easily an asset can be converted into cash.
what is net worth?
Amount of money left when liabilities are subtracted from asset.
what is a asset?
everything an individual or household owns.
what is liability?
debts what is owned to others.
when talking about savings and investing describe interest and interest rates.
interest is the price of money. interest save is the percentage rate paid on the money invested or saved.
what portion of your income should you save?
you should pay yourself first.
how can you make saving automatic?
savings and investing should be considered a fixed expense that is automatic.