Saving And Investment

You probably have big plans that you want to achieve. Whether it’s buying a beach house, the car of your dreams, or a backpacking world tour, all these projects require money, not only a few hundred dollars but a few thousand. You can actually use credit to help finance such projects. However, borrowing costs money. So you need to balance between your saving and investment.

It is, therefore, profitable to build savings to finance projects rather than resort to credit. Thus, you will not lose money unnecessarily. Nevertheless, be aware that in the case of a major purchase, such as a house, it is more useful to use the home loan than to put all of your savings, even if you have the interest to pay.

The savings account, a secure investment

The savings account is the easiest and safest way to save money. It also allows you to benefit from significant remuneration each end of the year depending on the interest rate and the amount saved. Their main advantage is safety. Some accounts and savings booklet also allows you to have access to your money at any time in case of unforeseen circumstances or if you need it to finance your projects.

High-yield financial investments

Placing your money smartly in high yield investments will allow you to earn attractive sums in the medium term. Be aware, however, that the risk rate of financial investments is in this case.

To find out how much you can earn through a financial investment, use our compound interest calculator and fill in the required fields. You will get the result of your investment.

Make sure you invest only the money you can afford to lose. Investing your money in high yield financial investments implies a non-zero risk rate. So you can lose your money invested. It is therefore advisable that you keep sufficient savings on your booklet to cover your usual lifestyle and possible unforeseen.

Invest in crowdfunding

The crowdfunding is a way for individuals and/or companies to raise funds to finance a project. This is the alternative method of bank credit financing works through online platforms.

If you want to invest in crowdfunding, you simply need to register on a crowdfunding platform, choose the project or projects in which you want to invest and place your money in the expectation of future returns.

Crowdfunding is a very attractive investment, both very profitable and much less risky than other financial investments. In fact, the return on investment in crowdfunding varies from 3% to 12%, much more than that of traditional savings books in saving and investment. The risk rate is however lower than an investment in the financial markets.

Invest in the financial markets

The stock market is in fact a market where shares are exchanged like stocks. To invest in the stock market, you simply need to buy securities in which you want to place your money. The return on this type of investment is generally very high. However, in order to make profitable investments and earn money, you must first have some knowledge and some experience because the risk ratio is also very high.

Invest in cryptocurrencies

Cryptocurrencies are virtual currencies and independent of central banks. These are alternative currencies because they have no legal tender in any country. To date, there are hundreds of cryptocurrencies. The most famous cryptocurrency is Bitcoin. The cryptocurrency principle is to develop a decentralized and secure payment method that cannot be manipulated by banks and is not subject to inflation. However, each cryptocurrency has a specific purpose.

This type of investment can have very high returns but it is also one of the riskiest because the cryptocurrency marketplaces are not regulated and the value of these currencies is very volatile.

Invest in Long Term Goals

Investing is a way to make money grow, by buying shares of stocks, mutual funds, bonds, or real estate. When you invest, there is a risk that you could lose the money you invest. In general, the greater the earnings you can make, the greater the risk. You can save for long term goals, such as retirement and college education by investing.

Savings Bonds

U.S. savings bonds are one of the safest types of investments because they are endorsed by the federal government.

You can gift savings bonds for many occasions, such as birthdays, weddings, and graduations. Keep in mind, paper savings bonds are no longer sold at financial institutions. But you can buy savings bonds electronically through TreasuryDirect.

Choose a Financial Professional

A financial professional can have multiple titles and may be licensed to provide products and services including investments, financial planning, and insurance. Before researching financial professionals, find out what the titles and licenses mean, as well as the educational, work experience, and ethical requirements. Keep in mind that a professional title is not the same as a license. The Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and state regulators do not grant or endorse any professional titles.

Things to Consider Before You Invest

If you want to pay for retirement, college, or a home, you may decide to invest your money to fund your goals. Before you invest, make sure you have answers to all of these questions:

  • What type of earnings can you expect on your investment? Will you get income in the form of interest, dividends, or rent?
  • How quickly can you get your money if you need to sell or cash in your investment? Stocks, bonds, and shares in mutual funds can usually be sold at any time, but there is no guarantee you’ll get back all the money you invested. Other investments, such as certificates of deposit (CDs) or IRAs, often limit when you can cash out.
  • What can you expect to earn on your money? Bonds generally promise a fixed return. Earnings on most other securities go up and down with market changes. Keep in mind, just because an investment has done well in the past doesn’t guarantee it will do well in the future.
  • How much risk is involved? With any investment, there is always the risk that you will not get your money back or the earnings promised. There is usually a trade-off between risk and reward—the higher the potential return, the greater the risk. While the U.S. government backs U.S. Treasury securities, it does not protect against loss on any other investments.
  • Are your investments diversified? Putting your money in a variety of investment options can reduce your risk. Some investments perform better than others in certain situations. For example, when interest rates go up, bond prices tend to go down. One industry may struggle while another prospers.
  • Are there any tax advantages to a particular investment? U.S. savings bonds are exempt from state and local taxes. Municipal bonds are exempt from federal income tax and, sometimes, state income tax as well. Tax-deferred investments for special goals, such as paying for college and retirement, let you postpone or even avoid paying income taxes.


Investment is a tool to make your money grow. If you want to avoid losing money and even be able to grow your money, you need to turn to more profitable investments such as term accounts, financial markets, cryptocurrency or crowdfunding. Some of these financial investments have a higher or lower risk rate. That is why there are financial guidelines to limit the risks and make your money grow in complete safety.