Determine your tolerance for risk and invest your money accordingly. For instance, if you are young and saving for retirement consider placing some of your money in the stock market. Over a longer period of time, the fluctuations in the market will be minimized by the market’s general upward growth, thereby minimizing your risk while providing you with a greater rate of return on your investment than more stable investment products. If, on the other hand, your investment timeline is shorter, you may want to consider something more stable such as a Savings Account or Certificate of Deposit (CD).
Spend less than what you make. Controlling spending and banking or investing your monthly surplus is the key to saving.
