9 Rules for Success.  Place 1,000 dollars in immediately  Build the fund to cover 6 months expenses  Don’t touch this money.

Slides:

Advertisements

Similar presentations

Saving Basics Savings is the portion of current income not spent on consumption. Savings accounts provide an easily accessible place for people to store.

Advertisements

Warmup Why does the dollar on the left have value, while the one on the right does not? What is money? Define Salary? How does it differ from other types.

Copyright © 2011 Pearson Education, Inc. Managing Your Money.

Warmup Why does the dollar on the left have value, while the one on the right does not?

Excerpts from: Kiplinger’s Invest Your Way To Wealth 5 Keys to Investing Success.

Finance Issues in the News. Economic Indicators Inflation: Overall rise in prices Inflation: Overall rise in prices -The Consumer Price Index averages.

Manage Your Money Karsten Jeske, Ph.D. Federal Reserve Bank of Atlanta.

Money Management Skills

Personal Money Management Choices

Becoming a Millionaire:

Investing in Mutual Funds, Real Estate and Other Alternatives

Managing Your Investments Chapter 11 Notes Money Management Got the Safety Net, Now What…? Once you’ve got a bit of emergency cash stashed away in some.

In this Unit We Will: Know the difference between saving and investing Be familiar with the time value of money Be able to compare investment options.

Saving & Investing Achieving Financial Success. What does it mean? Saving  Putting money aside for future use Investing  Using money so that it earns.

Investing in Mutual Funds or Real Estate Chapter 14 Notes Mutual Funds  This is the most popular investment alternative out there! Here are the basics:

Financial Goals.

The Financial Plan Chapter 2. Definitions You Need to Know Personal financial plan: specifying financial goals and describing in detail the spending,

5.1 Savings and Investing 5.2 The Rule of 72 Getting Started.

1 Becoming a Millionaire: Saving and Investing. 2 Starting a Savings Plan “Getting rich is not a function of investing a lot of money; it is a result.

Becoming a Millionaire: Savings and Investments. 2 Starting a Savings Plan.

The big QuestionThe big Question  A stranger on the street approaches you with a strange proposition: You can have a million dollars right then and there.

The Financial Plan © 2010 Pearson Education, Inc. All rights reserved Chapter 2.

Personal Financial Literacy Lesson 2 Review 1. Which of the following is an example of investing? a. Putting money into a piggy bank at home. b. Saving.

 Why is it important for you to start saving now? SLID E 1.

 Saving is income not spent.  Saving also includes reducing spending, such as recurring costs.  Savings can include a relatively low-risk investment.

Savings & Investments REVIEW How to Make a Million Dollars.

A Penny Doubled Visual Aid 7.1. Saving versus Investing Visual Aid 7.2 SavingInvesting.

Banking, Saving and Investing Using Money to Make Money.

Chapter 1 Overview of a Financial Plan

THE BASICS OF SAVING AND INVESTING LESSON 1. Lesson 1: Why People Save and Invest Preparing for a career--college.

Savings and Investment Options Stocks, Bonds, Mutual Funds, etc.

Investing. Investing putting your money to work to earn more money putting your money to work to earn more money.

Personal Money Management Choices

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

Introduction to Saving. © Family Economics & Financial Education – Revised November 2004 – Saving Unit – Introduction to Savings Funded by a grant from.

Introduction to Saving. © Family Economics & Financial Education – Revised November 2004 – Saving Unit – Introduction to Savings Funded by a grant from.

Investments There are many different reasons to invest: University/college House Kids’ future Life Insurance (Cash Surrender) Retirement Travel & saving.

What is something that you would like to save money for?

Budgeting and Financial Planning Why should people make a plan for how to get and spend money? What strategies can be used to do this most effectively?

INVESTMENT OPPORTUNITIES. Risk and Return Higher risk usually means a chance at a higher return. Also means that you could lose more money. Lower risk.

money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)

4 Important Things to Remember About Money that People Like to Forget You can't get something for nothing. If it seems too good to be true, it probably.

The Financial Plan Chapter 2.

Your Cash. Discussion Topics Understanding how to manage you money wisely can mean the difference between success and personal stress. Overview Earning.

© Prentice Hall, 2007Excellence in Business, 3eAppendix C - 1 Personal Finance: Getting Set for Life.

1 Becoming a Millionaire: Saving and Investing OSFA Office of Student Financial Aid University of Georgia.

Chapter © 2010 South-Western, Cengage Learning Investing for the Future Basic Investing Concepts Making Investment Choices 11.

Investing: Making Money Work For You October 24, 2009.

Economics Making decisions. Definition of Economics Economics is the study of how we make decisions in a world where resources are limited. – Do we make.

money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)

 Investing: The purchase of anything of value with the expectation that its value will increase.  In all investments, THE HIGHER THE RISK THE HIGHER.

Investing & Housing Let your money make money.. Risk v. Return  All investments have risk & return  Undiversifiable Risk – Uncontrollable  Diversifiable.

Saving & Investing. Why Save?  To buy something in the future  To have emergency funds  To build up money to invest  To have options – school, work,

Spending, Saving, and Investing. Rational Decisions and Financial Planning Economist assume that, given enough information, most people are rational and.

ESSENTIAL QUESTION: HOW CAN SOMEONE INCREASE THEIR HUMAN CAPITAL? HOW CAN CREATING AND MANAGING A BUDGET HELP SOMEONE MAKE BETTER FINANCIAL DECISIONS?

10 Concepts for a Better Financial Future. How Much do You Need In Retirement? $200,000 ? $500,000 ? $1,000,000 ? $2,000,000 ?

 Capital Spending: money spent by a business for an item that will be used over a long period.  Capital Projects: spending by businesses for items such.

I.) Inflation: a.The value of the dollar decreases b.Takes more dollars to purchase the same amount of goods II.) Winners and Losers of Inflation !!!!

BUDGETS AND BALANCE SHEETS Chapter 4. OBJECTIVES Explain the steps involved in creating a budget Describe the steps involved in creating a personal balance.

Unit Four Savings & Investments Pages

Chapter 1 Overview of a Financial Plan. Copyright ©2014 Pearson Education, Inc. All rights reserved.1-2 Chapter Objectives Explain how you benefit from.

Chapter 6 Saving & Investing. Deciding to Save There are many reasons to save:  for purchases that require more funds than you usually have at one time.

Job 1: Consult with your parents Tell them you want to start saving and investing. Ask them if they have a person they work with.

Chapter Saving 2. Commercial Bank 3. Savings Bank 4. Credit Union 5. Savings Account 6. Certificate of Deposit 7. Money Market Account 8. Annual.

The Financial Plan Chapter 2. ‘Your Financial Plan’ Involves your individually specific financial goals Describes spending, borrowing, and investing needed.

Chapter 32 Saving and Investing Introduction to Business Spring 2005.

Presented by Glendale Community Library Instructors: Chuck Milliner and Annette Fisher.

Introduction to Saving & Investing Family Economics & Financial Education Take Charge of Your Finances.

The Role of the Consumer n Consumer purchases drive the economy –GDP=C+G+Ig+Xn –C=two thirds of GDP n Savings –Ig=Business spending comes from business.

Introduction to Investing

Presentation transcript:

9 Rules for Success

 Place 1,000 dollars in immediately  Build the fund to cover 6 months expenses  Don’t touch this money

 Your net worth is everything you own minus everything you owe.

 Therefore, you must invest your net worth to beat the inflation rate.

 Offense: A good salary and wise investment.  Defense: Limit debt to things that go up in value (education, house)

 We must start NOW!  The Rule of 72 demonstrates that time is the key to vast net worth accumulation.

 Get in the habit NOW, of putting 10% of your take home pay into an investment.  Direct deposit puts the cash in the investment before your hot little hands can spend it.

 If a portion of your investments are going to a specific objective not far in the future, take little risk.  The majority of your investment should be LONG TERM

 Risk tolerance dictates what types of investments suit you.

 Loan it: Bonds  Own it: Stocks

 You can buy bonds from corporations or the government.  These are generally safe investments with a stated rate of return.

 Stocks represent part ownership.  You can purchase individual shares, or you can invest in mutual funds.  You can gain a lot, or lose a lot.

 Young people are in an excellent position to take more risk.  Their time horizon is vast.  They can recover in downturns, and accumulate copious amounts of net worth.