Saving and Investing - Saving&Investing HACE3110 HACE...

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Saving & Investing HACE 3110 Thanks to Will Johnson for the initial draft! HACE 3110 Dr. Brenda Cude This Week Saving and investing Setting and achieving goals Emergency funds Options Cash equivalents Bonds Stocks Mutual funds Money for Life P e r s o n a l S v i g R t c W k G Health Insurance E m p y Re F d f D b
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Saving vs Investing _________ is when you put money aside and do not spend it. _________ is when you use your saved money to try and create even more money. Define Your Goals What are you saving for? How much money will you need? How long will it take to reach your goals? ________ I would like to have money for a new car. ________ I will save $500 a month for the next 24 months to pay cash for a used car. Goals
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Types of Goals Short term (next 6 months) Graduation trip Intermediate (6 months to a year) First and last months’ rent for apartment Long term (more than a year) Buying a car Compound Interest Interest earning interest! Example: You invest $1,000 into a savings account with 5% compound interest Year 1 Year 2 Yr 2 (simple) Principal $1,000 $1,050 $1,000 Rate .05 .05 .05 Interest $50 $52.50 $50 Total $1,050 $1,102.50 $1,100 Interest Rate Comparison
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Interest Rate Comparison How Do You Find Money to Save? Automate savings–pay yourself first! Save all of your change–or all of your $1 bills Once a regular payment ends, start making that payment to yourself. Track your spending. Avoid debt–don’t pay interest and late fees. Cut down on everyday expenses. Bring your lunch–eat out less often Lunch Savings Calculator How Do You Find Money to Save? Live below your means Delay gratification–Wa it until you’re sure you need it and can pay for it Live on one salary while bringing in two Create multiple streams of income
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Emergency Funds
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This note was uploaded on 09/30/2011 for the course HACE 3110 taught by Professor Cude during the Fall '11 term at University of Georgia Athens.

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Saving and Investing - Saving&Investing HACE3110 HACE...

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