How to Invest like a gangster
why savings and investing is important
Savings
Savings is really important, it's pretty much your back up plan. It's a pretty big amount of money that is kept in a bank account but whenever you need the money you can get it out. The interest rate on your money is about .001% so you don't get much money back, but there's a very low risk with losing money in a savings account.
Three types of Investing
Checking Account
Is a bank account that enables you to make withdrawals or payments to other people using checks. The risk of losing money with a checking account is low, you also make an interest rate of 1%. If you don't like to carry money around a checking account is a good way to access your money and pay for things.
Collectibles
A Collectible is an object of a type that is valued or sought after by collectors. The risk of investing in collectibles is high because you never know when the value of the object may go down or up. Liquidity is very low because you have to find someone who is interested in the object and willing to pay a big amount, sometimes profit off your collectible is very high in return but sometimes also low.
Savings Bonds
Is kinda like a check that will be worth double of what it is now in 10 to 20 or even more years. You can't cash the savings bond till the amount of time is up, you aren't allowed to sell them either if it has your name on it only you can cash it in. The risk of losing your money is low, but liquidity is low also. This is a good present to give to your grand children so when they get older and go to college they will have money to pay for some of it.