CD

Strike a Balance between Spending and Saving

There are three kinds of people in this world: excessive spenders, misers, and people who know how to balance their spending. And you don’t want to fall in the first two categories.

An excessive spender is a person who makes extravagant expenses, such as luxury watches, expensive dinners or entertainment expenses, even if he is not rich enough to afford all these. He spends money as soon as he has saved up enough for his next purchase. [Read more…]

Popular Instruments for Low Risk Investment

One of the best investment strategies is to build an investment pyramid in which most of your funds would be in low-risk instruments (the bottom of the pyramid), while a small part of your funds go into risky assets like stocks. Some of the common low risk investment options that you can put your funds in are discussed here. [Read more…]

Basic Guide to a Certificate of Deposit

A certificate of deposit is a low risk investment and gives higher returns than saving accounts. It operates by taking a certain amount as investment for a fixed period that can be anything from one month to even more than five years. CDs are issued by banks and the Federal Deposit Insurance Corporation (FDIC) insures them up to $250,000, which means they come with a guarantee from the U.S. government. [Read more…]