 |
|
|
|
Creating a Savings Habit gives us options in the future. It gives us flexibility throughout our lives. If we feel it is time to leave a position for another one, we can do it. If we want to live in a different part of the country, a solid savings account will give us that flexibility. With Social Security continually at risk and pensions disappearing, saving and investing are now more important than ever. Saving and investing are essential if you want to build WEALTH.
The big difference between savings and investments is time. Savings is money you set aside for future a short-term goal. It is typically more accessible, and if in a savings account, usually very safe. However, in order to meet long-term goals, it is important to consider investments. Investments will allow you the 10% return that can make your money grow. See How Time Affects The Value of Money!
Although keeping your debt under control is very important, and putting aside money for emergencies is a necessity, it will be difficult to realize the dream of owning a home, or buying a car, or realizing any of your dreams for the future without an investment plan.
Saving NOW is important! Students don’t usually have lots of extra money to put into a savings account. However, the amount you save is not as important as establishing the habit of savings NOW. Our society has instead made it too easy to create a spending habit through easy credit. So instead of building wealth and security, many nearing retirement have debts instead of investments.
|
|
|
|
|
