Choosing To Save

Brooklyn Hay

SAVING IS IMPORTANT

Difference between savings and investing is...

the degree of liquidity

Liquidity is...

is how easily and quickly an asset can be converted into cash.

Net worth is...

a description of an individual or family financial condition on a specific date.

An asset is...

anything an individual or household owns, that could be sold for cash.

A liability is...

a debt (something that is owed to another person).

Interest and interest rates are...

Interest is the amount of money, and an interest rate is the percentage rate paid on the money invested or saved.

Making Saving Automatic

By looking into a depository institution, they can help you to set up automatic transfers between accounts. Once this is complete, a portion of your money will be transferred into your "savings" account each month.
The portion of your income that you should save 10-20% of your net income.