Among the last areas of serious study for most people when they start learning about money are savings and investments, especially the latter. Yet these areas have incredible potential, even beyond that of business activities.
If you want to be truly successful with money, it is absolutely essential to learn the basics about saving and investing. There is truthfully a lot to learn, but fortunately it is easy to break your study into a lot of small parts and, learning a little at a time as needed.
If you want to be truly successful with money, it is absolutely essential to learn the basics about saving and investing.
Only a few types of savings and investments are essential to understand at first, but over time you want to learn about many important opportunities to achieve your best results.
Murphy Money: Your Emergency Fund
The first and most essential savings a person must have is an emergency fund, or what I like to call Murphy Money. No one can anticipate exactly when financial setbacks will occur. An emergency fund is the best way to be prepared so that they will not be overwhelming.
Begin by reading my related article, appropriately called Murphy Money.
Saving and Investing for Retirement
After saving for an emergency fund, the second most important type of savings/investment is for retirement or for what I would describe as a financial freedom fund because what you really want is to be able to support yourself without requiring a “job”—whether you choose to work or not—at any age.
Unfortunately, many people fail to elevate this to its proper level of importance. But in truth it is vital.
Begin your preparation for retirement or financial freedom by reading my article, Planning for Retirement.
How to Save for Big Ticket Items
One pitfall lies in the path of financial success for nearly everyone. There is an unavoidable desire, and at times a real need, to buy things that are beyond the scope of the normal monthly budget. We often group these into a category we might call “major purchases.”
Whether we are talking about new furniture, appliances, or an automobile, you can start thinking and planning for them by following the guidelines in my article, How to Save for Big Ticket Items.
Saving for Education
A major savings need for many of us is saving for education. Many families are overwhelmed with the rising costs of education, especially for their children. This is particularly true on the college level.
Saving in advance is much to be preferred over incurring debt, but how should we do it? Read about some of the options in Saving for Education: Are Educational Savings Accounts the Best Way to Save for College?.
Invest for Fun and Profit
After the essential forms of savings and investments are accounted for, the next step is to move on to general investment for income purposes.
In part this type of investing should be looked at the same as you would your job or operating a business, as a means of producing income.
In part it should be looked at as a part of your plan for financial independence.
And in part, in my opinion, it should be looked at as a fun part of a complete life.
Learn more about this important part of your savings and investment by reading Investing for Fun and Profit.
Begin to Save and Invest Today
Work your way step by step into a position of strength and engagement with the world of investment.
Prepare for saving and investment by getting in control of your money and getting out of debt. Then work your way step by step into a position of strength and engagement with the world of investment.
It is hard to imagine anything that could more dramatically change your life. This series of articles can do a lot to guide your way to success.