ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Stock Market
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Starting your own business
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Financial Security
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Applying for a credit card
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Detailed explanation-1: -Make the first check you write each month a deposit to your mutual fund, money market or brokerage account. Then pay all your regular monthly bills, finishing up with the credit card bill. If you’re having trouble paying that last bill, trim your discretionary spending–but keep paying yourself first.
Detailed explanation-2: -They make it easier for you to make sacrifices or stick to a budget because you know what outcome you’re striving for. They help you keep focused on the long term. Motivation – financial goals provide purpose and energy and help you stay disciplined in your investment process.
Detailed explanation-3: -Saving provides a financial “backstop” for life’s uncertainties and increases feelings of security and peace of mind. Once an adequate emergency fund is established, savings can also provide the “seed money” for higher-yielding investments such as stocks, bonds, and mutual funds.
Detailed explanation-4: -Financial goals. Net worth statement. Budget and cash flow planning. Debt management plan. Retirement plan. Emergency funds. Insurance coverage. Estate plan.