Saving & Investment Strategies

Front

Saving

Back

Restricting expenses and keeping the unspent money in one’s own custody for the purpose of accumulating it.

Front

Liquidity

Back

Degree to which an asset can be quickly bought in the market without affecting the asset’s price.

Front

Investing

Back

Act of buying an asset to generate returns from it over a period of time while also taking care of risk and volatility.

Front

Inflation

Back

Rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.

Front

Interest

Back

Reward for lending money.

Front

Simple Interest

Back

Interest computed on the principal, excluding previously earned interest.

Front

Compound Interest

Back

Interest which is calculated on the initial principal as well as the accumulated interest of previous periods.

Front

Compounding

Back

Happens when investments generate earnings, then those earnings generate earnings of their own.

Front

Financial Institutions

Back

Companies engaged in the business of dealing with monetary transactions, such as deposits, loans, investments and currency exchange.

Front

Commercial Banks

Back

Financial institutions which provide security and convenience to customers.