Financial Advisory

Made by Abi Fisher

Saving Tips

Saving Tip #1: One way to help you save is to keep track of your monthly spending, then create a monthly budget to keep your spending in check. After making your monthly budget stick to it, keep receipts to show what areas you did well with your savings in and what areas you need to work on.

Saving Tip #2: Another money saving tip is for you to eat at home more often than eating out. Sure it's easier to run through the drive-thru and eat in the car but you're spending more for a burger and fries for 2 people than it would cost to make dinner at home.

Saving is Important

Saving money is important for many reasons. By saving money you are helping the economy grow, for example if a company were to borrow money from the bank that you keep your money in then that company produces more goods and sells more, making a growth in the economy. Another reason is that saving can help you reach important goals. Everyone has goals for their future or their children's future, but how can you expect to achieve those goals without some form of savings? It is very likely that any goal you have will require money, which is where the savings would come in. Retirement is something everyone strives for, no one wants to work forever, but you can't live if you don't have any money to live off of. Saving also helps you weather hard times. By this I mean that when misfortune hits you or the economy overall it's good to have savings so that you have something to fall back on. Most misfortune hits at unexpected times and unless you have that money to help you through it you would be facing a really hard time financially.


Investing Tips

Investing Tip #1: One of the best tips out there for investing your money is that when you're young you should be investing more but as you get older you should tone down on the investing and save more. This gives you a healthy amount of money to fall back on.


Investing Tip #2: Invest in many diverse categories, that way if one were to have a fall out your others assets will, hopefully, be enough to keep your head above water. Don't put all your money into one industry, investing in mutual funds is a good way to do this because a mutual fund consists of many assets that share the money you invest.

Investing is Important

Investing is important because by taking the risk of investing your money you are making your money grow. The increase in money you could get from investing is a way to make money to go to college, start your retirement fund, or even paying off the bills that you have stacking up. Although you don't always make money when you invest, you have the possibility of losing it too. Risk and return go hand in hand, if the risk of losing money is high then the potential return is also really high. It's very important when investing to weigh the risks and see if they are worth the potential rewards.


Risk

Risk is the chance of losing money. In our everyday lives we take many risks but financially we try not to take very many. For example if someone is asking you for a dollar you may think 'Oh what the heck I didn't need that dollar' but if they were to ask you for one hundred and fifty dollars most people would be more hesitant. The risk of that situation would be not getting that one hundred and fifty dollars back, whereas it's more likely that if you give someone a dollar thy will repay you somehow. If you were to take your money and invest all of it into property the risk is very high because property values change all the time, one bad storm could make the value of your house drop drastically.

Return

Return is how much money you will be getting back from an investment. If you were to invest in a stock today and the percentage went up on that stock then you would be making money, however if the percentage went down then you would be losing money. If you make a good choice in the stock(s) you invest in then you should see positive returns. Say that you were going to put your money into a government bond, the return of that would be high because while the government was using your money they would have to pay you back interest so you are guaranteed to get the original amount back and then some.


Liquidity

Liquidity is how easy it would be to change an asset into cash, or how easy it would be to sell your asset. For example if you were looking to sell your stock in a company that would be at the medium level for liquidity because it's never a solid number, the companies progress is what sets the standard for how much money you would make selling that stock.