Saving and Investing
How you'll make your millions
Saving Your Money
What You Should Know
You probably know the basics of saving your money. You open a savings account at a bank, and the longer you keep your money in there, the bank will pay you interest. This is the most common type of savings account. But you may not be aware that the highest interest rates, are often provided when you get a CD. Or, as it's also known, a certificate of deposit. These are a long term investment in which you keep you money in a CD account, for a pre-determined period of time. These accounts give you higher interest rate, but if they get cancelled before the end date, there is often a fee, and interest may be withheld. Watch the following video for more extensive on this type of d=savings account.
University: Certificates of Deposit
Investing Your Money
What You Should Know
Investing money in companies is incredibly risky. Unlike in saving, you are not guaranteed to have the same amount of money at your finish, as you did at your start. But to learn about investing, you need to know what a stock is. A stock is a portion of a company, when you buy stock in a company, you own a portion of that company, and in return, make profits along with that company. If the company fails, you loose money. You also need to know about liquidity. Liquidity is how fast assets can be sold. For example, cash is the most liquid asset, while a stock that you have to exhaustively try to sell is illiquid. you may also wonder where to invest your money. Well, there are many companies out there for you to invest with, but it is easier to start with something you know. Invest in something you believe to be going somewhere.
Investing Basics: Stocks
Why does it matter?
Saving and investing your money will often result in more money for you to spend. It's a simple way to make your money make you money, with limited work on your end. So next time you make some big bucks, put them in a savings account, or invest them in an innovative company. You will thank me someday.