The Power of Investing 2.1 Pages 36-40
Saving – putting money aside for a rainy day Investing – making your money grow Rewards of Investing make money can last a lifetime time is on your side help you beat inflation a way to own a piece of corporate America it’s fun
Investing is important –Jobs are changing quickly –You will probably work for many employers –No company pension –Investing is a necessity
Compound interest – when interest is added to interest The rule of ÷ percentage of growth = length of time for investment to double An investment growing at 10% a year 72÷ 10 = 7.2 years
Basic rules for investing 1.Invest on a regular basis over a long period of time 2. Reinvest all earnings 3. Invest in good quality growth companies 4. Diversify your portfolio