You know that saving and investing are important, and to be honest, you could do better. April is Financial Literacy Month, so now is a great time to get on the right track.
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According to the Financial Literacy and Education Commission, saving and investing is one of the five key principles of financial literacy — along with earning, spending, borrowing, and protecting — and is a process that takes time. These key activities are a must to achieve your short- and long-term financial goals.
In the short term, you need to put money in an emergency fund. This can literally save your finances if you face an unexpected big expense or suddenly lose your job.
Knowing that you’ll want to make a big purchase in the future — either in a few months or a few years — is another big reason to save. Whether you’re planning to buy a home, go on vacation, or get back to school, putting a little money aside can make a lofty financial goal achievable.
Even if retirement is decades away, it’s important to start saving now to enjoy financial stability in your golden years. If you’re like many people, you invest a percentage of your monthly income in a 401(k) or an IRA and take pride in watching it grow.
Feeling a little overwhelmed with all your savings and investment options. Don’t worry, we’re here for you.
Check out GOBankingRates’ guide to start saving and investing.
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