Should we save or invest? When should we invest?
Do you have any free money, save it or throw it? It's important to see how long your security pad and this money will last.
A lot of people get a piece of money and they struggle with it: bank, money, or stock market funds? Actually, it's not a choice, it's in order. The first step will always be to put Contingency fund in jail — to keep the cost of living for three to six months as a life-saving money that must not be taken at risk. When the security pads are in place, free money will be suitable for entry into the Recovery investments track, allowing time to earn money for you. If you don't even have enough money for an emergency, you'll be forced to cut your meat at a low point by a single job or a big drop, and all the revenue plans ahead are in vain.
It's an investment term.
- Money to be spent in three years (first-payment for a home, marriage, school): suitable for deposit or low-variant management, not for the stock market
- Three to five years: A robust fund can be configured in small amounts, but no
- Money that is not needed for more than five years: it's really good for long-term equity investments, and it's good for us to get back together.
- Always keep Contingency fund and then talk about the rate of return.
The boundaries of deposits and investments are also related to the interest rate environment. When High-yield savings interest rates are close to or exceed the historical return on your investment, they are more cost-effective and less costly; It is only when the market returns significantly higher in the long term that it is worth the investment of idle money. In line with Pay yourself first.'s auto-saving habits, you find that "surplus" and "vote" are not opposing, but rather the back and back of the same set of financial rhythms -- to keep the foundations in place and then to keep the investment going.