Saving and Investing
Rachel Arch
Why are Saving and Investing important?
.It can help the economy grow
.Can help you reach goals ex:buying a house or car
.It can help you if you are out of a job, then you can you the money you have saved over time to help cover your expenses for the time being
. When you save your money throughout you life it can help you with retirement
Investing your money can be important because:
.Using the money you have already saved to earn even more money
. Can help retirement come faster
. Is an easier way of making more money instead of letting your money sit in the bank were it earns very little interest
Examples of Saving and Investing
Beginner investor/saving
Ex of two saving options: checking account or bank account
Good Investor/saving
Pro Investor/saving
Speculative investing: some people never make it to this fifth and final "step" in saving and investing. This step holds the highest risk for someone, but you also earn the most amount of money. When people enter this stage in investing they most likely invest in penny stocks or collectibles.
REMEMBER
Liquidity- is the ease with which assets (ex: bonds, stocks, etc), can be converted into cash