When you listen to the evening news and hear reports that the stock market had a great day, do you find yourself wishing you were investing? If so, you’re probably not alone. Only about 55 percent of Americans invest in the stock market, according to a Gallup poll.
Valeria sometimes feels like she should be investing, but she is intimidated. What Valeria doesn’t realize is that she is well on her way to growing her wealth because she already is saving on her own and she is taking steps to learn about investing.
Saving and investing often are used interchangeably, but there is a difference.
Saving is setting aside money you don’t spend now for emergencies or for a future purchase. It’s money you want to be able to access quickly, with little or no risk, and with the least amount of taxes. Financial institutions offer a number of different savings options.
Investing is buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you. Investments usually are selected to achieve long-term goals. Generally speaking, investments can be categorized as income investments or growth investments.
