Introduction: Why saving and investing matters?
Today we live in a complex world, and the realm of saving and investing for your future is just as complex. Back in the day, you could sit back and rely on a company pension, social security, and saved cash for emergencies. However, that may not necessarily be the case now. Complex and confusing financial products are a necessary vehicle as you build a foundation for your future. This module will give you the basic knowledge to make informed decisions about how to proceed with your saving and investing plans.
There are two ways you can make money:
- You work for your money in the form of employment with a company or through self-employment, with a full-time commitment to success.
- Your money works for you (sometimes easy, other times very hard) in the form of saving and investing, hoping you generate earned interest, dividend, or capital gain on your investment. You can lend your money to individuals (cash), companies (stocks), and/or State or Federal government (bonds) with the premise you get paid interest in return. Or, you can purchase commodities or real estate, with the hopes of an increase in market value. The goal is to generate more cash flow and build long-term assets in the process.
To achieve your goal, you should learn about saving and investing. Let's get started with the chapters below!
Chapter 1. Basic concepts: Compound interest & time value of money
Chapter 2. How do I decide if I should save, invest or both?
Chapter 3. What is risk assessment? What is risk versus return?
Chapter 4. Savings and investment vehicles, what is the difference?
Chapter 5. Is it ever too early/late to plan for retirement?
This was made possible in partnership with The Singleton Foundation for Financial Literacy and Entrepreneurship. This video and more videos like this can be found on Millionstories.com Links to an external site..