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A quick guide to saving and investing

Saving and investing are two entirely different terms that are both necessary for a financially secure future. With that being said, your 20’s are a pivotal moment to help put your future self in a financially comfortable situation for years to come. Although your salary may be at its lowest while you are just entering the workforce, it’s likely so are your expenses. It’s important to enjoy the money you work hard for, but starting to save and invest at a young age will allow you to appreciate even more money when you need it the most.


Start by setting reasonable financial goals to work towards. If there is a place you’ve always dreamed of traveling to, start putting money away to make the dream vacation a reality. Or if there’s a new gadget you’ve had your eye on, save up to buy it. Although money may be tight, try to save a set amount of money to put in an emergency savings account. Life can throw a curve-ball when you least expect it, so having money readily accessible will help you deal with any emergency crises. Cars break and computers crash, but life goes on, so having some money saved will help deal with any financial emergency. Just by saving spare change, using coupons, and packing your lunch instead of eating out can save in the long run. Just think, putting aside 50 dollars every month will give you 600 dollars at the end of the year.


Investing is equally important as saving, if not more. If you’re looking to buy a house or have a comfortable retirement, investing now will help you achieve those aspirations. Stashing money in a savings account may help short-term, however, it won’t ever grow. Investing will allow you to turn your saved money into another form of revenue without lifting a finger. The stock market can drastically grow your money, but with the high reward comes high risk. If you don’t know much about the market, equity funds might be for you. An equity fund is a type of mutual fund that will invest money on your behalf. See if you’re eligible for a 401(k) plan with your employer to start saving for your retirement. A 401(k) allows you to invest an untaxed portion of your paychecks in whichever way you want. The most common type of investment is a target-date fund which is a combination of stocks and bonds. It’s typically a safe investment that gradually earns you more money for your retirement.

Saving and investing can set your future up for financial success. The actual follow-through is what will get you there. If it helps to type out a structured plan, consider doing so. Share your ideas with friends to get that extra boost of encouragement and motivation. It’s never too late to start saving and investing!


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