FLH-17

Going to college. Buying a car. Starting a business. Retiring from work. Any financial goal or dream that you have can become a reality if you get in the habit of consistently setting aside small amounts of money over time. Starting this routine at a young age will really pay off and allow you to control your financial future.

Though we tend to use the terms saving and investing interchangeably, they’re not the same. The difference has to do with taking financial risk. Investors walk a line between wanting to make money and not wanting to lose money. Saving money in a bank keeps it completely safe but pays a lower rate of return than some other investments. Investments that pay higher rates of return come with higher risk—the chance you could lose some or all of your money.

It’s important to understand that, most often, high-return investments come with higher risk. And low-return investments or savings usually come with low risk.