Not yet registered? Create a OverBlog!

Create my blog

A guide to savings and investments

This article describes what individuals need to do before they can venture into the field of savings and investments. These are two deeply related concepts and the manner in which a person handles one always affects the other. The guides are flexible enough to fit people of all economies across the world, no matter their professions.

Savings

Savings and investments are two features that everyone must have in their life in modern times. Their main aim is to provide financial security in the present and future. The task of saving has become increasingly easier nowadays due to the availability of the Internet. Individuals no longer have to rely on physical bank savings accounts alone, because they can undertake the same activity on online savings accounts. However, before a person embarks on the task, they need to consider a number of factors. First, do they have debts and do they have a plan of becoming debt-free? Savings are only beneficial if a person is fully solvent or on the way to becoming so. Second, they need to ensure that they protect their finance in the event that they cannot work for an extended period, due to illness or injury. Sickness pay needs to last long enough to avoid eating into savings. Third, one needs to ensure that their savings plan takes into account retirement so that when their employment pay runs out, they will still have another source. Only after all these factors are in place, can a person embark on a savings plan that will serve as the base for investment. As mentioned earlier, there are many options for saving on the Internet, such as the e-Savings account among others. The general rule is to have at least three months' salary on savings before initiating an investment.

Investments

After that a person has amassed a reasonable amount of savings, the following rules can guide their foray into investments. First, they need to decide on what financial goals they want to achieve. Then, they need to determine the timeframe in which they want to achieve these financial goals. This is important because it will give them the rate of return that they should expect from their investments. Third, they need to gauge the level of risk that they can expose themselves to. This will determine how much loss they can tolerate. Fourth, one should be realistic and come up with the amount that they can channel from their savings into their investments. Final word Lastly, one should seek financial advice from a professional in the field of the chosen investment. This last step ensures that the process listed above fits one’s exact financial health.

Same category articles Banking

Consequences of exceeding your credit card limit

Consequences of exceeding your credit card limit

A credit card facility allows the user to borrow money for personal use such as purchasing goods and services. The issuer like banks creates a line of credit to the user in advance and is subject to interest charges. There are various consequences of exceeding the credit card limit such as penalty fees and reduction of credit score which are illustrated in this article.
What are HUD loans?

What are HUD loans?

When people are shopping around for a new home, they must also shop around for home loans. There are a variety of different home loans offered by banks and financial institutions, but one of the more popular types of loan is a HUD loan. Since the housing market crashed, many potential home buyers are looking into obtaining a HUD loan, because it can be more benefical to them.
How to apply for a Susquehanna bank account online

How to apply for a Susquehanna bank account online

People who are wondering how to open a Susquehanna bank account online will be happy to know that the process is very simple. All one needs to do is fill out an online form and send the bank some documents.This article explain to the applicant the procedure he/she should follow.
All about: The Juniper card

All about: The Juniper card

Juniper Bank issued the Juniper card since 2004, when the bank was taken over by the Barclays Bank. The Juniper card was actually a reward card offered by different merchants and utilised through the Juniper Bank. Thus, the Juniper credit card was issued in partnership with different companies which offered certain benefits to the cardholders.