Financial Advisement

Savings and Investment

The importance of Saving and Investing

Saving and Investing are two very important things, but have you ever wondered why? Well saving is important for multiple reasons, such as it helps the economy. If you save your money in the bank it give the bank more money. Now you may be wondering why its good that the banks have more money, well if the banks have more money they can loan more money to businesses which helps the company grow. Saving money can also help you in your future, hmm lets say you wanna have a really nice wedding, or you wanna go on vacation somewhere really exotic and tropical. Well sorry to tell you but you can't do those things for free. So if you save now someday you can do those things.

Investing is important because of the obvious rewards you can get. But, with those rewards there comes risks, and generally the higher the reward the higher the risk. If you invest you can get compound interest, which is basically earning interest on your interest.

Possibilities and Tips

Saving Tips!!

  • Start saving when you're young
  • Create a budget

Investing tips!!

  • Make riskier investments only if you're young and have a stable job that gives you extra spending money
  • Take advantage of compounding

Saving Options

  • Retirement - Saving up money for the future when you can no longer work is a good idea
  • Saving for Tragedies/Hard Times - It is important to save up money for hard times or personal tragedies such as getting hurt on the job or getting laid off
Investing Options

  • Stocks - Buying a share of the company, a good way to earn money but the higher the benefits the higher the risks
  • Bonds - One of the safest investments, you lend money to someone who agrees to pay it back and pay you interest on the money you loaned them

Risk - How much you can lose when you invest

Return - How much profit you can earn

Liquidity - The ability to draw your money out. If you must wait a certain amount of time this has a low liquidity