“A culture of saving and investing is a sure way to build momentum towards achieving your short and long-term financial obligations. The funds that you save for short-term goals should be kept in cash and cash equivalents because your objective should be to preserve their value in a liquid asset.
“The resources that you save towards your long-term goals should be invested in assets that may be less liquid but offer higher returns. “The types of assets you invest in your savings will significantly impact your return and consequently, the amount available to finance your plans for a family or other financial goals.”The key is to start saving and investing as early into your career as possible. The sooner you start putting money away, the sooner it begins to earn interest. If invested properly, the money can grow substantially over time.
It is advised that you make wise investment decisions. Explore options that allow you to automate your savings and investment in the form of automatic withdrawals from your bank account. After making this arrangement, stay the course. Consider that by starting early, you are positioned to benefit from the well-established trend that investments in riskier assets such as stocks, potentially outperform less risky short-term assets such as cash equivalents over time, especially when diversification is appropriately adopted in investing.
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