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Start Saving and Investing in Your Financial Future
 

Start Saving and Investing in Your Financial Future

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The safest investments have lower returns than the riskiest investments. Current CD rates on certificates of deposit or savings rates on savings accounts might only pay 1.00 percent right now but at least you won't lose any of your principal investment. Yes, investing in stocks or mutual funds might earn you 10 percent or more but you might also lose 10 percent or more.

No one is born having the knowledge to save and invest. Every successful investor starts with the basics of saving and investing, most people attain financial security by having a long term view.

Starting the process is easier than you think, history as shown, people of even modest means who begin the path to financial security do so my mapping out a plan. They have purchased a home, had better educational opportunities for their children, and are able to have comfortable retirement.

The first step to coming up with a savings plan is to make a list of goals and prioritize them in order. You'll find that each period in your life will have different goals which is normal. After you have listed your goals decide how many years you have to meet each specific goal, because when you save or invest you’ll need to put money aside for these goals.

If you don’t know where you are going, you may end up somewhere you don’t want to be, the same holds true for financial goals.If you are living paychec to paycheck like the majority of people thse days you'l never have money to save or invest so you need to look for ways to cut back on your expenses.

You'll be surprised where you're money is going when you sit down and list all your expenses. Even more so you'll be surprised how much you can cut back to save and still have a life.

You will be surprised how even the small everyday expenses can add up over a year, two or five years. Do you spend $3, $4 or even $5 at Starbucks everyday? $5 a day is $1825 a year. Buy luch everyday at work for $10?

That ads up as well, there are about 22 working days each month so that comes to $220 or $2640 a year. You're already at $4,000 you can save and invest each year.I think you get the idea here, look at everything, small expenses and big expenses.

Watch that impulsing buying, have a rule that you will always wait a couple of days to buy anything. You'll find out that these impluse buys you really don't want after a day or more. Another way to save money is pay off your credit cards that have the highest interest rate first. Paying off a credit card that has an interest rate of 19% will save you a ton of money.

There are only two ways to make money, work for your money or have your money work for you. The best thing about the later is every day your money can earn money for you and the more money you save the more money you earn. Your actual savings should be placed into a savings account or certificate of deposit.

All investments involve some sort of risk. It’s important that you go into any investment in stocks, bonds or mutual funds with a complete understanding that you could lose some or all of your money.

As i said more risky investments are "risky" but the potential reward is better. That doesn't mean you have to take uncessary risk, remember the old saving, if it's too good to be true it isn't true.
Author: Stacy Everest
October 3rd, 2011