Saving and investing go hand in hand, so when I discuss saving your money, I also mean to include investing your money. Why? Because if you don’t invest your hard earned money, then you’re actually not technically “saving” due to constantly changing inflation rates. That being said, it’s important to balance lazy saving vs aggressive investing throughout your life.
Early Life Saving and Investing – Invest More
In your younger years (I’m guessing we’re on the same page of assuming 20s to early 30s) it’s a good idea to really go hard and invest your money. Be aggressive with it. Look for somewhat risky, but high revenue investments. Please don’t misunderstand and think I’m telling you to invest in the guy down the street. But invest in something other than Coca Cola, or another similar company that is large and steady. Put your money in slightly higher risk mutual funds. Over time, you will make more money. Then put a decent percentage of your money into CDs, bonds, and other long term investments.
Mid-life – Make sure you have enough on hand
In the middle of your life you’ll probably have kids, cars, houses, etc. There’s lots of room for large expenses come up. The car breaks down or your kids break a leg. You want to be sure that you have money on hand to deal with this. Be sure you have enough accessible money to handle any of these disasters. Be less risky in your investing, but still invest. Start “saving” more and increase saving as you get even older.
Later life – Retirement
Start shifting your money out of long term investments and more ready to use. Don’t be risky with your money at all! This is where stocks and everything else should be shifted into accessible savings accounts. A plummeting stock at this point in your life can be disastrous. Slow down your savings as well. It’s time to enjoy the money you saved and have fun in your retirement.
Category : Business News