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

How to get the cheapest car loan

How to get the cheapest car loan

Are you looking to buy a car? Everyone requires financial assistance once in a while, be it from your family, a friend or your local bank. İf you are considering on getting a loan for a car, then read this article. This article will provide a brief guide on how to get a personal car loan.
The pros and cons of student consolidation loans

The pros and cons of student consolidation loans

You cannot eliminate student loan debt by filing for chapter 7 bankruptcy. Education loan consolidation is a popular way of ensuring that the repayments remain easy to manage and stay affordable until the debt is completely cleared. Find out the advantages and disadvantages of student consolidation loans.
How to get a bad credit home mortgage

How to get a bad credit home mortgage

If you have got a bad credit history, it is possible to get a good refinancing home mortgage loan. The most important thing here, however, is being able to shop around and understand the requirements and limitations of the different lenders. Just like any other borrower, you also want to make sure that you get reasonable interest rates and an attractive repayment structure.
Pros and cons of the credit card minimum payment

Pros and cons of the credit card minimum payment

There are options for credit card debt repayment. You can pay the balance off in full, pay the minimum payment or choose a payment that is between these two extremes. The minimum payment is the lowest payment that the bank is willing to accept for the month. When it comes to choosing the minimum payment, there are pros and cons to consider.