SAVING AND
INVESTING MONEY STRATEGY - ADVICE HOW TO START SAVING
PLAN BEGINNING PRINCIPLES
INFORMATION - INVESTOR 101 LEARNING BASICS PERSONAL FINANCE MONEY
MANAGEMENT GUIDE FREE
EDUCATION ARTICLE
How to
start saving money and investing long-term.
INVESTING BEGINS WITH SAVINGS
How do you
start investing money? The key to
investing is savings. An effective savings
strategy coupled with a smart investing strategy
will help you to meet your financial goals.
Every dollar
saved now helps you to control your current
consumption by which the size of the income that
you think will be required for retirement is
lowered. Also, through the power of annual
compounding, it increases the size of the nest
egg you’ll have for retirement.
SAVING
AND INVESTING STRATEGY
Discipline
To achieve any goal in life, one needs
to be disciplined. Similarly, saving and investing too requires discipline.
A disciplined approach helps you to remain focused on your financial goals.
Formulate a plan and review it periodically to ensure that you are on the
right track.
The 10% rule
Your goal should be to save at least 10% of your total before tax earnings. This
should be the minimum. Most millionaires live far below their means as they are
disciplined and highly focused on their financial goals from the beginning. They are millionaires
because they have decided to be so.
Review your current consumption patterns
Conduct a careful study of your consumption patterns. Identify items of
expenditures that you can do without or explore opportunities to reduce your
costs without unduly sacrificing the item. Review such items as your cable bill,
telephone bill, entertainment expenditure, insurance, brokerage services,
utilities, cars. Divert these cash savings automatically to an investment
account.
Budgeting Plan
Budgeting is vital to any savings strategy. It helps you to identify where your
money is going. Wasteful consumption patterns can be controlled through
successful budgeting. Often a simple spreadsheet in Excel would suffice. In fact, you can
use the budget template that is already available when you buy the Home edition
of Windows XP.
Plan to make saving automatic
Find out from your employer whether you can direct your paycheck to different
accounts. If you don't have such a service, you can set up an account that
will take the money automatically out of your checking account each month. Let
the amount be directed to an investment account. This is re-enforced savings
which implies you save first and spend the rest from your paycheck.
For teaching about investing:
Teaching Investing Lessons
All about investing and money
management. Learn basic investing
and financial concepts, including stocks, the stock market, interest, income statements. Lessons, lesson
plans, and worksheets.
To
teach and learn more money skills, personal finance, and money
management, please go to the Money
Instructor home page.
Investing and Saving
Money Strategy - How to
start saving money and
investing - Teaching student
investing basics
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Thematic Unit -
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Adults - Importance of Investing with saving and Finance
How to
start saving money and investing long-term.
To
teach and learn more money skills, personal finance, and money
management, please go to the