For education only. Not financial, investment, tax or legal advice. Investing carries risk. Read more
Everything in this book is for education only. It explains how money and investing work in general. It is not financial, investment, tax or legal advice, and it does not recommend any particular investment, product or provider. Prices, rules and tax figures change: check them with the official source before you act. Before you make an investment decision, consider speaking to a licensed adviser where you live (in Jamaica, one licensed by the Financial Services Commission). Investing carries risk, including losing some or all of the money you put in.
Saving or investing?
Tell saving and investing apart, and decide which of your money belongs in each.
Saving means keeping money somewhere safe, such as a savings account at a bank, building society or credit union, so it is there when you need it. It grows slowly, if at all.
Investing means putting money into something that can grow faster, such as shares in a company or a fund. What it earns is called the return. The Financial Services Commission (FSC) warns that an investment expected to earn more also carries more risk: the return can be a loss.
A simple rule: money you need soon (in the next few years, or for an emergency) stays in savings. Money you will not need for five years or more can be invested.
Do not save what is left after spending, but spend what is left after saving. ~Warren Buffett
About 2 minutes