Why learn about saving and investing?

The world of saving and investing can be a bit overwhelming and complex. The traditional idea of relying on employers for financial security, in the long run, is sadly in the past. But with that- it has also opened up new opportunities and creative ways to think about the way you save and invest your money. Gone for the most part are the days when you get a job, work for 40 years, and then retire with a big fat pension that takes care of everything you need. Today, most of your goals, aspirations, and passions will require you to have more than a basic understanding of how the world of saving and investing works.

Passions and Lifestyle

The things that matter to you in life, beyond your profession, typically require financial resources. It would be amazing if you were able to accumulate those financial resources from just your income alone, but we all know that this is not the case for a vast majority of people. When we desire or need things that we can not afford from our everyday paycheck we realize that we have to save and invest.

What are some things you can save and invest for?

Home

Car

Education

Retirement

Children

Medical or other emergencies

Periods of unemployment

Two ways to make money:

Sometimes you or someone you know (Review the budgeting module on Money Coming In if you need a refresher) may have income but no money left over at the end of the month or other time period. This is not only a problem for your immediate finances but also an issue for your long-term financial success. It's a simple calculation and is not difficult to determine what is happening in your life. You are working for your money, but is your money working for you?

Work for your money - the money you earn from working/your employer
Money works for you - saving and investing lets your money make money

Learning Checkpoint:

Optional Activity: Is your current savings account giving you the best rate. We at Niner Finances always want you to be earning the highest interest rate on the money you are saving for emergencies or other goals. Check to see if you are getting the best rates by spending some time on Bankrate.com

[Chapter 1]: Introduction to Saving and Investing

[Chapter 2]: Compound Interest and the Time Value of Money

[Chapter 3]: Should I Save, Invest, or Both?

[Chapter 4]: Risk Assessment vs. Risk Return

[Chapter 5]: Savings and Investment Vehicles

[Chapter 6]: When to Plan for Retirement