Mind map
Saving and Investing
Map content
Saving and Investing
Saving : income that we choose not to spend
Investing: putting money aside in order to get a better return on it in the future
Factors to consider when saving or investing
- Risk : will your savings be safe and secure? Money saved in a licensed financial institution is far safer than money kept in a drawer or even a safe at home
- Liquidity : Is it easy to withdraw or access your savings should you need to? That is, how quickly can it be turned into cash
- Taxation : tax on your interest ex. DIRT:
- Reward: will the savings earn interest
- Convenience : is the account convenience for making regular lodgement