Saving and Investing
Saving and investing is an important issue with every family. It’s the best idea to start saving with your first pay check. If you didn’t do that, you can’t begin any earlier than your next pay check. You might think you don’t have any money left over to save. The remedy to that is to write a check for savings first, and budget the remainder of your money to pay bills. You might have to skip movies, or dinner out but savings is more important.
It’s never too early to start saving. It is important to start a savings, no matter how little and keep it constant. With the housing market as it is, you can’t count on your house to automatically increase enough to assure your retirement. Initially it’s a good plan to have at least six months salary as a security blanket in case you lose your job. To do that you should save a certain amount of your salary out of every paycheck. If you save only after you have paid all your bills, you will never find money to save. The money will slip right through your fingers, instead write yourself out a check every month when you pay your bills, and put it straight away in the bank.
Save Money (Photo credit: 401K)
Set short and long time goals. The first thing is to save your six months salary, then put aside a certain amount for retirement. Also start a fund for whatever you plan on buying later. It might be a car, vacation or anything you know will be needed. Be consistent, even if it’s small amounts, you will see your savings grow. If your job has a savings plan, take advantage of it. You can also contribute to an IRA and deduct it from your taxes.
You don’t want to invest in stocks and anything that isn’t a sure thing until you have your six months salary and an emergency account. Be aware that brokers and financial planners make a commission on the products they sell, which gives them an incentive to sell certain stocks. Ask about their background, experience and how they are compensated. Ask if they can give you a discount. Sometimes you can get discounts of 20% to 30%. If you decide to invest in short term investments, look at certificates of deposits, or government bonds. These low risk investments don’t pay amazing returns but they provide steady, safe income. Be sure they are federally insured.
If you’re investing long term, say 20 years, consider putting some money in the stock market or in stock mutual funds. Look for a reasonable balance of risk and growth. think long term. Don’t go after the hot mutual fund of the month. Evaluate the five to ten year record of a fund, because that will show the up and down of the market. Never buy anything you don’t understand. Don’t be afraid to ask questions.
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Published in: Personal Finance
Comments: 38 | Post a CommentPost a Comment
Brenda Nelson | Feb 2, 2012 | Reply
I am a big fan of living frugally and putting money aside for savings, I get worried about the risk of some investing.
girishpuri | Feb 2, 2012 | Reply
i agree and appreciate your suggestions
mdrkarim7 | Feb 2, 2012 | Reply
Nicely explained
Angelji | Feb 2, 2012 | Reply
good inputs.
SharifaMcFarlane | Feb 2, 2012 | Reply
Solid advice. It’s good to take a little something and put it aside.
Shirley Shuler | Feb 3, 2012 | Reply
I agree, Ruby, it’s always good to save a little something for a rainy day.
LoveDoctor | Feb 3, 2012 | Reply
These are great tips Ruby. Several years ago, I started a savings account and after six months I had $6000 left. Now I only have $3000 left, but I’m going to start saving once again since I’m already done paying off some of my bills.
sambasivarao | Feb 3, 2012 | Reply
Nice article Ruby. I will start new savings. Thank you for the sharing.
tipsheetwriter | Feb 3, 2012 | Reply
i hope to be able to save this year. it’s been hard the past 2 years.
Jo Oliver | Feb 3, 2012 | Reply
Good ideas, Ruby. I do try to put 10 dollars out of all my Triond earnings aside each month. Its small, but ppl need to realize that even small amounts like $10 will eventually add up! So Id just add to not feel stupid starting small…everyone starts somewhere!
LCM Linda | Feb 3, 2012 | Reply
Great advice on saving and investing. Once saving becomes a habit, it will be easier.
Nidhi Rai | Feb 3, 2012 | Reply
Savings are very important. Nice share.
Eunike | Feb 3, 2012 | Reply
Thank you for the info. I am often tempted to invest rather than save the money.
fishfry aka Elizabeth Figueroa | Feb 3, 2012 | Reply
Great article, but some what easier said than done. However I do understand the importance.
dwisuka | Feb 3, 2012 | Reply
great advice
Lisa Marie Mottert | Feb 3, 2012 | Reply
Great advice… especially with today’s economy… wise to save:)
Informative, and a wonderful guide in the importance of saving and investing! Great article!
Bruce Officer | Feb 3, 2012 | Reply
I don’t know whether they have them in your country, but when it comes to stocks and shares I think the safest option is a tracker fund. Those invest in the top 100 (or sometimes 350) firms on the stock market and automatically adjust their holdings to reflect the relative balance of them and the effect is that they pretty much follow the stock market index. The real advantage is that they have very low commission rates because they are not paying analysts to examine company results and predict what will be best. Studies have shown that they do just as well, and often better, than fancy funds managed by high-power stock dealers.
Rosettaartist1 | Feb 3, 2012 | Reply
something im not good at
Aroosa Gloomy | Feb 3, 2012 | Reply
This is great article dear:)
sanataryal | Feb 3, 2012 | Reply
Ruby, professional advice and cool ideas. Very well written. Thnx for sharing.
avissado | Feb 3, 2012 | Reply
putting aside a little bit for tomorrow is always a wise thing to do! great article!
avissado | Feb 3, 2012 | Reply
putting aside a little bit for tomorrow is always a wise thing to do
Dragoonk | Feb 3, 2012 | Reply
It is what I am trying so hard to do. I need money bad, hopefully to reah the US and study. Ofcourse, saving money would mean .. having some and save from them little by little. Anyway I like how wise these choices are. Thanks alot Ruby
dodolbete | Feb 3, 2012 | Reply
I need to save a lot more hahaha Thank you ^_^
Vinaya says good bye | Feb 3, 2012 | Reply
Earning will mean nothing until we save some parts of our earnings. Thanks for sharing your views.
Paul Roberts | Feb 3, 2012 | Reply
Saving money is like losing weight. it is a behavior change. Both require discipline. You have opened the door to future articles on this subject. Good lead in , Ruby
lapasan | Feb 3, 2012 | Reply
Good advice especially to young people. They should make saving money a habit.
sloanie | Feb 3, 2012 | Reply
I think we’ve given enough of our money to
the Bankers Ruby, so I’ll stick my money under the bed for now.
The interest rates are rubbish anyway.
PR Mace | Feb 4, 2012 | Reply
This is one thing I am good at and that is saving money. Good helpful tips and advice.
zulfikar | Feb 4, 2012 | Reply
saving and investing are vital. i like your idea of first set aside a saving and then do whatever you want to do with the remaining amount. thanks for sharing.
Daisy Peasblossom | Feb 4, 2012 | Reply
Ruby, I could have used this advice when I was young and foolish — it would make being old and foolish a lot easier. It is still good advice, no matter what age you may be.
lowellhenderson | Feb 4, 2012 | Reply
Very good article Ruby…as always. Have a great day.
A Bromley | Feb 4, 2012 | Reply
I liked Daisy’s response. Me too.
Anyhow, this is a very good and well written article with some very solid advice. I hope the young folks out there reading this will heed what you have said here.
vagrant | Feb 4, 2012 | Reply
I agree. No matter how small your salary may be, always make sure to save some of it.
carissimi | Feb 4, 2012 | Reply
Great Advise! Enjoyed reading this.
Safa | Feb 5, 2012 | Reply
Sound advice..Great article
Stable | Feb 5, 2012 | Reply
Very sage advise on saving and investing, thanks Ruby.
Hettie | Feb 8, 2012 | Reply
A great article Ruby, I could have used the advice years ago.