Financial Tip Friday – Saving -vs- Investing

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Deciding what to do with your savings can be very difficult. You try to split it up between emergency funds, rainy day funds, retirement funds, college funds, etc. Knowing what funds to put into savings and what need to be investing is simple!

Money that you need to spend in the next few years, lets say 1-5 years, belongs in savings. This includes a down payment for a house, emergency funds, vacation funds, basically anything that you may need to get your hands on quickly. Put it in a low risk savings account or money market account. Try to find a savings account that has a decent APY. As of right now, I use Capital One 360 for all of my savings and the APY is, ugh, just ok. Shop around before opening up any account!

Money that you don’t need for at least seven years is money that should be invested. We’re talking about things like retirement funds and college tuition funds for young children. I am no professional financial advisor and for these kinds of funds, I couldn’t tell you where to invest all your cash, but do it wisely and if you need to dish out some money to talk to someone that’s knowledgeable in investing these things, do it! Totally worth it!

I hope this helps! Have a great weekend!

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Financial Tip Friday! – Don’t Stress

I’m coming to you live from Brooklyn, NY this morning with a very important tip!

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My financial tip for you on this cloudy, damp Friday, is to not stress yourself out over your finances. I’m a worrier by default. I think I inherited it from my mother. I worry about getting a flat tire. I worry about getting places late. But more than anything I always worry about my finances. Worrying isn’t going to help you pay your rent this month, but a solid plan and a strict budget will!

Also, I know I talk about saving money all the time and it’s one of the most important things that you can do, but you also need to live a little. For a few months I’ll be on a savings kick where all I wanna do is just save money because I look at my bank account and I see the benefits of all that savings. And then sometimes I just want to blow it on something fun, like a 2 night stay in Brooklyn and a couple tickets to the Nets vs Heat game which I will be attending tonight! (OMG! Lebron James and I will be in the same room!)

Moral of the story, or of this blog or whatever… Don’t spend all of your time worrying. Spend a little time worrying, a little time having fun, and a lot of time in control! And in the words of my grandfather, when he came to my mother in a dream (true story!), “Don’t worry so much … I worried my whole life and everything always worked out.”

Have a good weekend!