Once you determine where
your money is going, and what
you have left over, start by
paying off your most expensive
debt first.
the minimum payment, while continuing to make the minimum
payments on all other cards. Taking these steps to start eliminating
debt will allow you to start investing your money to allow it to
grow for the future.
INVESTING ESSENTIALS
We all work hard for our money, but it is
important for your money to work just as hard for
you. Now that you’ve determined that 20% of your
money should be budgeted to financial goals, you
just need to figure out how to invest. No matter
what you are saving for, you should start by setting
realistic, manageable goals for your money, and then find the
discipline to reach them.
Investopedia breaks investments into three groups: ownership,
lending, and cash equivalents.
Ownership Investments: Typically the most volatile and
profitable. These types of investments span from stocks, to
owning or running a business, to buying investment real
estate, to purchasing precious objects such as jewelry or art
with the purpose of reselling to make a profit. While you
can make the most money out of these investments, there
is often greater risk. If you have a “risk is worth the reward”
mentality, then ownership investments may be a good
option for your money.
Lending Investments: Similar to Monopoly, you get to
be the banker. These low-risk investments, in the form
of savings accounts, tend to return less than high-risk
alternatives. Questioning why your savings account is
considered a lending investment? Your bank uses the money
in your savings in