GETTING STARTED: KEY CONCEPTS OF SAVING AND INVESTING

The key concepts of saving and investing must be learned by anyone serious about their financial future.

Preparing for a career, often by going to college. Saving for major purchases and expenses(such as college education, a family and a first home. Building up a "rainy day" fund for emergencies(possible job lay off, etc.). Developing a personal financial/investment plan. Starting a savings and investment program.

Beyond the things they may need or want either now or in the near future, people save and invest for other reasons. One of the most important reasons for people to save and invest is to provide the funds for a comfortable, financially secure retirement. People who save and invest for the long term are using their money to make more money- through Interest in a bank product (such as a certificate of deposit) or through market returns on a stock, bond or mutual fund. Most investors need both bank and investment products to meet their long-term financial goals. Using money to make money is one of the key concepts of saving and investing.

Saving and investing are good things-they can make one's life better. Ask yourself this question: Could you spend 10 percent less than you do now , and still have fun and put that money to work for your future? It takes more than luck to get what you want out of life. Tomorrow's adults have to know what they want and then commit to a plan to meet thase goals. The hazards of not planning include the risk of having a lifestyle filled with limited choices. You need to know that by Paying yourself first you can do more than just dream about what you want in the future: Those dreams can really come true.

Most people have to work to earn money. And once they have earned it, they have an important choice to make:

*Spend it all; or *Spend a portion and save the rest.

Whether one's income is small or large; setting aside some of it for investments requires self-discipline. This means that anyone with the self-discipline to postpone buying certain things they'd like to have now can enjoy the longer-term benefits of having that money work for them through savings and investments.

Financial decision making is important early in your life because each decision will bring you either closer to, or further away from, your saving and investing goals. If you start off planning to save $100 a month but then you go shopping and spend the money, you have made a bad financial decision. If you continue to do this month after month, you will never reach your financial goals. Financial decision making is another key concept of saving and investing.

Over time, saving can build up money, however, investing offers the best way to achieve long-term financial goals. Any discussion of investing must begin with this simple truth: Investing means taking risks. Investment success depends in part on the ability to address those risks without passing up reasonable returns. That is why everyone needs to create a financial/investing plan that suits them and then they need to stic with it.

Anyone can accumulate substantial sums of money by applying the following five keys to investment success. Take note that these are the Keys to saving and investing, not secrets. There are not any secrets to saving and investing.

Pay Yourself First Set goals That Will Inspire Success. Don't Take Unnecessary Risks. Put Time To Work For You Diversify