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  • AMBER HUSSAIN - Savings and Investing Activity

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    The document discusses saving money for both short-term and long-term goals. It recommends having 3 to 6 months of salary saved in an emergency fund to prepare for unexpected costs. Short-term goals require saving for less expensive purchases over a short period, while long-term goals involve saving for more expensive items like a house over a year or longer. Saving gives people security and reduces financial worries, which can contribute to greater happiness.

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    AMBER HUSSAIN - savings and investing activity

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    The document discusses saving money for both short-term and long-term goals. It recommends having 3 to 6 months of salary saved in an emergency fund to prepare for unexpected costs. Short-term goals require saving for less expensive purchases over a short period, while long-term goals involve saving for more expensive items like a house over a year or longer. Saving gives people security and reduces financial worries, which can contribute to greater happiness.

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    10 views2 pages

    AMBER HUSSAIN - Savings and Investing Activity

    Uploaded by

    AMBER HUSSAIN
    The document discusses saving money for both short-term and long-term goals. It recommends having 3 to 6 months of salary saved in an emergency fund to prepare for unexpected costs. Short-term goals require saving for less expensive purchases over a short period, while long-term goals involve saving for more expensive items like a house over a year or longer. Saving gives people security and reduces financial worries, which can contribute to greater happiness.

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    © All Rights Reserved
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    of 2

    These savings earn interest and are protected against loss, however this money loses

    purchasing power over time due to inflation.

    In investing, you use your savings to earn extra income. It's advantages include: higher rate
    of rate and investments can grow or exceed the rate of inflation. The disadvantages
    include: the yield is not guaranteed and there is risk of losing part or all of the money.While
    savings are protected, investments can be lost completely.

    In case of an emergency, insurance offers protection, but it does not cover


    all the costs. This is where emergency savings come in handy; it prepares
    you for emergencies and unexpected hardships. It is recommended that
    you have 3 to 6 months of salary in your savings account.

    Short term goals is usually the purchase of inexpensive items in a short


    period of time. Examples include a bike, a TV, or a concert ticket. Long term
    goals require you to save for a year or longer to pay for more expensive
    items. Examples include a car or a house.

    Saving money for emergencies gives people a sense of security and


    satisfaction. Those who are free from worries about money are generally
    happier people.
    6*12 months = 72 months
    $750/72 = $10.42/month
    6*12 months = 72 months
    $900/72 = $12.50/month

    8*12 months = 96
    $525/96 = $5.50/month
    8*12 months = 96 months
    $475/96 = $4.95/month
    6*12 months = 72 months
    $3750/72 = $52.1/month
    15*12 months = 180 months
    $12000/180 = $66.67/month
    15*12 months = 180 months
    $5500/180 = $30.60/month

    9*12 = 108 months


    $4200/108 = $38.90/month

    The total amount saved each month is (rounded up): $240.

    Instead of saving throughout 6 years, I would be saving in 2:


    2*12 = 24 months

    $750/24 = $31.25/month

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