Investing is basically putting your money into a business or asset in the hope of a financial return. It is one of the best ways to build wealth and save for your financial goals if you haven’t inherited it. Investing as soon as possible can help you get a head start. Learn more about why it makes sense to save money. We introduce the magic triangle of investing, simple and compound interest, and other the investment basics. When investing remember that diversification is key to safety.
Diversify
Self Learning
Reflect saving and investment:
- Do you have a savings account?
- How familiar are you with the relationship between risk and return?
- Do you know the most common financial assets to save and invest?
Think about your financial needs. What are your priorities? Financial return? Security? Flexibility? Think of the relationship between risk, return, and liquidity.
Test
If you had $1000 in a savings account and the interest rate was 2% per year, compounded annually, how much would you have after 5 years?
Great! Why not learn more about the importance of financial literacy?
If you’re not quite ready yet, learn more about the importance of financial literacy.
If you’re not quite ready yet, learn more about the importance of financial literate.
In Real Terms
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