what is the difference between savings and investing?
- savings-income not spent on current things
- investing- saving money for the future
what is liquidity ?
How quickly an asset could be covered into money .
what is net worth ?
amount of money left after all assets or dedications
what is a asset ?
Anything that the family owns that could be sold for money .
what is a liability ?
interest and interest rate
- interests-price of money
- interest rate - the percentage of it .
portion of income should you save
should save 7%
how do you make savings automatic ?
through decomposition institutions