Saving & Investing
We can get so caught up in day-to-day events that we don't think about the future. This may not be a problem today or tomorrow, but in the long run – when you want to buy a home or when it's time for retirement – savings and investments can be vital.
Saving. Everyone needs an emergency savings fund. Most personal finance experts recommend an emergency fund of between 3 and 6 months of income. The idea is that you would have enough money to cover all of your expenses for several months in the event of a financial crisis. If you're just starting out, set a goal of $1,000. An emergency fund will prevent you from having to use credit if you have a sudden financial need. Make saving easier by using direct deposit.
Your first savings goal should be to build a strong emergency fund. Second, save for retirement. Fully fund your employer provided retirement plan and/or an IRA. Third, save for future goals such as a special vacation, a car, a college education, or a home. Your goals and dreams are as individual as you are but most of them come with a price tag. Think about your future and create a financial plan to make your dreams come true.
Investing. Investing is one of the best gifts you can give yourself. It's the best way to make your money grow. Gain the financial resources to live your dream whether it's home ownership, a college education, or travel during retirement. Two important investing terms are risk and return. "Risk" is the chance that that the money you invest will be lost. "Return" is the potential that you will earn money on the amount you invest. Typically, the higher the risk, the higher the potential return. Always carefully consider any financial investment opportunity. Frauds and scams are prevalent. Contact the Arkansas Securities Department for safe investing tips for consumers or to report potential fraud.
- Build Your Savings
Learn tips to increase your savings.
- Ways to Save
Stop living paycheck to paycheck and use these easy tips to save.
- Pay Yourself First
Make saving money part of your regular budget by paying yourself first..
- Money Traps
These common money traps can defeat your good intentions to build financial security.
- How Do You Feel About Risk?
Higher returns on your investment often come with a greater risk of losing your money. Take this quiz to find your comfort level..
- Saving and Investment Options
See saving and investment options for various levels of risk and return.