Investing and Saving

The goal of investing is quite different from saving. Saving makes money available to you in a secure place; investing seeks to make 13that money grow for some future use.

Two rules of thumb: Invest 10 percent of your income, and pay yourself first. Your deposit into your investment account should be the first check you write each time you get paid, not the last. If you pay yourself first, you’ll be able to manage on what remains. If you instead plan to invest what remains from your paycheck after you’ve met other needs (and wants), you’ll find that you have little or nothing left for investing most months.

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