A savings account is an instrument of saving. Similar to a checking account, a savings account holds your money in a safe and secure place, Continue reading The purpose of a savings account
Emergency fund – the pillar of your personal finance
I started saving for emergency fund even before having an idea of what it was about. To most people, the concept of an emergency fund is very intuitive. It is the money saved aside for emergency situations. Continue reading Emergency fund – the pillar of your personal finance
The power of compound interest: why you should start investing today
On Tuesday, February the 5th, I finally opened an investment account at Scottrade, after missing out on a lot of good deals from the stock market recovery from late 2011 through 2012. My 401(k) plan with my employer consists of mostly stock rather than fixed income, and sure enough my annual return in 2012 was almost 20%. But I was particularly confident about the revival of Bank of America when its stock price was around $5 a share, and even now I still believe I would have bought a lot of their shares and would have benefited from the 100% return had I known how to invest and had the determination to step into the investment world. Regrets are my life enemy, and to end this agony, I just had to open an investment account.
I have a personal interest in investing, so investing is just especially exciting to me. But there’s another reason I wanted to start investing sooner rather than later, and this reason applies to everyone. Continue reading The power of compound interest: why you should start investing today