Forex Trading Library
EUR
$1.06
(0%)
GBP
$1.25
(0%)
AUD
$0.70
(0%)
JPY
$0.01
(0%)
TRY
$0.06
(0%)
INR
$0.01
(0%)
SGD
$0.72
(0%)
MYR
$0.23
(0%)
JOD
$1.41
(0%)
KWD
$3.27
(0%)
SAR
$0.27
(0%)
AED
$0.27
(0%)
QAR
$0.27
(0%)
OMR
$2.60
(0%)
EGP
$0.05
(0%)

10 Facts You Should Know About Saving and Investing

16 17,777

We all work hard for our money, but does our money work hard for us? The answer to that question breaks down the difference between investing and saving. Saving is all about putting money aside. You’ll know at any given moment just how much cash you have in that nest egg. Investing is more of a long-term plan for earning. The amount of your money’s worth can fluctuate from day to day. It might come down to the issue of risk.

Do you want to put your money at risk with the potential of reward or do you want to play it safe? Before you decide what to do with your money, consider some of these facts:

About Saving

Saving money has many perks, but you need to do it right. Here are a few facts that you can use to save smartly.

  • You Need to Form a Saving Habit

The best approach to saving money is to pay yourself first. Even a small amount set aside from every paycheck will have a positive impact on your savings account. It all comes down to discipline. Yes, there might be weeks that you could use that extra $25 that you deposit into your savings, but try to make the deposit first as part of that weekly routine. Then think about the withdraw.

  • You Have to Cut Spending to Save

You’ll find plenty of politicians who claim the only way to save is to cut. There is a grain of truth in that. When it comes to your own household budget, you have to live within your means in order to have the money to set aside for savings. That could mean cutting your daily trip to Starbucks to once or twice a week instead. Perhaps you can eat in more to bring down your monthly food costs. The little sacrifices you make today can result in a big benefit down the road when you really need to use those savings.

  • You Should Take Advantage of Employment Matching

If you happen to work for a company that matches your 401(k) savings, then it is in your best interest to funnel as much money into that account as possible. You’re basically going to get a bunch of free money from your company. That could translate into thousands of extra dollars each year. Are you really going to leave that kind of money on the table?

  • You Can Save and Earn

The employee matching of your retirement savings is a way to earn with that money. There are other options as well, such as money market accounts or certificates of deposit. With these types of saving accounts, you’re still putting your money aside but you’re locking it down and letting it earn interest. You’ll find that most of these savings accounts can provide better rates than the plain bank savings account.

  • You Can Schedule Your Savings

Most banks allow you to set up a savings withdraw from your checking account. You can set up a specific amount to come out weekly or monthly. Those savings will start growing and you won’t have to lift a finger.

About Investing

currencies in hands

Deciding to invest your money can be scary, but a lot of that fear factor diminishes with just a bit of knowledge.

  • When You Buy Stocks, You’re Becoming a Company Owner

A popular form of investment is a diverse stock portfolio. A stock is an ownership share in a company. The more stocks you own, the greater your stake. The goal of every publicly held company is to pay its shareholders’ dividends. Those are based on how much profit is generated by the company. Of all the possible investments you can make, stocks are the most volatile. Your fortunes rise and fall with the company.

  • You Can Invest Your Money in Money

Another form of investment would be on a currency exchange. This is where you would be investing in one currency while selling in another. That means your trades are happening in pairs. As with the stock market, you can track the currency rates throughout the day to see how your investments are doing.

  • You Can Invest in a Bond for a Guaranteed Return

Investing in a bond is like loaning the government money. A city can issue bonds to build a stadium or schools. That loan is repaid with interest over a fixed period of time. Bonds are thought of as secure investments. In other words, you know just what you’re getting and when you’ll get it.

  • You Pay for the Privilege of Investing

When you enter into any type of investment, you’ll be paying to make that investment. This will be a service or brokerage fee given to the person or entity that is trading on your behalf. These fees can vary between firms and are often small percentage points. Still, it is money taken off the top of what you put in. It doesn’t matter if your investment suffers a loss. You’ll still pay those fees.

  • You Have to Pay Taxes on Your Investment

Just like building a house, you have to take into account how taxes will affect your investment. The more you invest in a home and in an investment, the more you will typically have to pay in taxes. Suppose you invest $10,000 in the stock market and after five years, you have earned $30,000. Nice work. Of course, that is how much you’re worth on paper. To actually get that money, you have to sell those stocks. Once that happens, you are creating a capital gain. That is something that will be taxed by the IRS. Bottom line: The more you earn and take out as cash from your investments, the more you’ll have to pay in taxes.

Many folks opt for a balanced financial portfolio that has both savings and diverse investments, including stocks, bonds, and mutual funds. It also helps to have a plan in mind for your money. Are you building your retirement nest egg? Saving for a house? As with most things in life, it helps to keep your eye on the goal.

Disclaimer. The views and opinions expressed in this blog are those of the authors and do not necessarily reflect the official policy or position of any other agency, organization, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author – and, since we are critically-thinking human beings, these views are always subject to change, revision, and rethinking at any time. Please do not hold us to them in perpetuity.

16 Comments
  1. Kathline Osteen says

    Saved as a favorite, I love your website!|

  2. Verdie Wactor says

    For most recent news you have to go to see world wide web and on internet I found this web site as a best site for most up-to-date updates.|

  3. Lorina Eggler says

    Greate post. Keep writing such kind of information on your blog. Im really impressed by your site.

  4. Wilton Ramgel says

    Hi there, of course this paragraph is actually good and I have learned lot of things from it on the topic of blogging. thanks.|

  5. Francesco Kavanagh says

    Hi there I am so thrilled I found your website, I really found you by mistake, while I was browsing on Digg for something else, Regardless I am here now and would just like to say thanks for a tremendous post and a all round exciting blog (I also love the theme/design), I don’t have time to read through it all at the moment but I have saved it and also added your RSS feeds, so when I have time I will be back to read a great deal more, Please do keep up the superb job.|

  6. Brett Boushie says

    Heya i’m for the first time here. I came across this board and I find It truly useful & it helped me out much. I’m hoping to offer something back and help others like you helped me.|

  7. Tiesha Sossaman says

    Hi there! I just want to give you a huge thumbs up for your excellent info you have here on this post. I’ll be returning to your web site for more soon.|

  8. Richie Bumps says

    Thanks to my father who informed me on the topic of this webpage, this web site is truly amazing.|

  9. Lina Felmlee says

    It’s an amazing article for all the online visitors; they will get advantage from it I am sure.|

  10. Mozell Sinkovich says

    Good day! This post could not be written any better! Reading through this post reminds me of my good old room mate! He always kept chatting about this. I will forward this page to him. Pretty sure he will have a good read. Thanks for sharing!|

  11. Jody Ammirata says

    Excellent pieces. Keep posting such kind of information on your blog. Im really impressed by your site.

  12. Jannette Schattner says

    It’s awesome for me to have a website, which is helpful designed for my knowledge. thanks admin|

  13. Roselle Geffre says

    My relatives every time say that I am wasting my time here at net, except I know I am getting know-how daily by reading such fastidious articles.|

  14. Alesia Feldhake says

    This is a topic that’s near to my heart… Thank you! Where are your contact details though?|

    1. Orbex2 Orbex2 says

      Thank you, please check our contact us page
      Contact us

  15. Vernia Leyland says

    Hey there! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Superb blog and excellent design and style.|

Leave A Reply

Your email address will not be published.