Friday, February 10, 2006

Is Learning How To Save Money More Important than Investing?

For many people, the prospect of investing the proceeds of their savings, is what puts them off saving money.

This may seem like an odd paradox but, the world of professional money management has fostered a culture where most people are bewildered with their financial options, and as a result, opt to spend their money rather than save it.

With complicated investment vehicles, and the risk associated with the stock market, many people simply avoid putting their money to work by failing to save.

For those who do manage to excute a savings strategy, there are a number of challenges that can be overcome with regard to investment vehicles.

Understanding the fees charged by investment brokers and mutual funds is an important first step. These fees can cut into your returns, much the same way interest erodes your savings capacity.

Once you have managed to save some money, and are going to invest it, look at low fee options like Exchage Traded Funds (ETF's)that function much the same way a mutual fund does but, without the high management fees.
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