Financial Advising

By: Brittany Hutchens

Saving and investments

There are two important parts of our economy. One of these are Savings accounts, they're are very important because the risks are very low, although the return is low (Only .001%) You're still going to get a little bit of money in return. You also high liquidity. The big plus to a savings account is that you can keep your money in the account for an hour, a day, a year, or 10 years or even longer. Investments, there are many kind of investments you can make, one is a checking account. With a checking account the risk is very low, your liquidity is high, but your return is low, (.001%.) Another option for an investment is stock. Stock's risk are medium/ high because there is no guarantee that you'll get all of your money back, is any of it. The return is pretty high, (11%) and the liquidity is Medium as well. The third investment you could possibly choose to make is in a property, although the risk is high because there is no guarantee that you'll get all the money that you were looking for. The return is high (20%) And the is very low, because it might take awhile to get someone to want to invest on the property you're selling. The fourth investment I'll be talking about is in Art the risks are very high, although the return is one of the highest investments you can make. Only problem is that the liquidity is very low. Investments are important because they're a good way of making money, rather than saving your money under your mattress and keeping what you have you can go out and get more money with the money that you do have. Now that you know about savings and investments, which is the right choice for you?


Saving tips & options

Tip #1 for saving: Create a budget, create a plan for how much you're going to be saving and how much you're going to spending. figure out your income and how much your expenses are going to cost. Decide if you want to put the rest of the money that you aren't spending into savings.



Tip #2 for saving: Create a checking and savings account. Having separate accounts will insure that you always have money if needed, the checking account is for spending and your expenses and the savings account is just in case something pops up. Such as, family emergency, or a hospital visit.



Investments tips & options.

If you aren't exactly "sold" on the idea of risking your money or you want to have more interest another option is a bank deposit, a bank deposit is by for the safest investment you can make. Even if the bank does lose all of your savings, the FDIC will reimburse you up to $100,000.


Another option you have is a bond, which is a loan that in which the person borrowing it promises to pay it back, with a fixed interest rate.