Saving and Investing

Earning interest in interest

• Compound Interest

• Consumption

• Do it yourself

• Emergency savings

The Purchase of goods and services

• Consumption

• Do it Yourself

• Emergency savings

• Interest

When you complete a task yourself rather than paying someone else

• Do it Yourself

• Emergency Savings

• Interest

• Interest Rate

Cash set aside to cover the cost of unexpected events

• Emergency Savings

• Inerest

• Interest rate

• Liquidity

Price paid for using someone elses money

• Interest

• Interest Rate

• Liquidity

• Opportunity Cost

Percentage rate used to calculate interest

• Interest Rate

• Liquidity

• Opportunity Cost

• Pay Yourself First

The value of the next best alternative that must be forgone as a result of a decision

• Opportunity Cost

• Pay Yourself First

• Principal

• Saving

How quickly and easily assests can accessed and converted into cash

• Liquidity

• Opportunity Cost

• Pay Yourself First

• Saving

Savings for the future by putting money aside before paying regular monthly bills or using income for dicretionary purchases

• Pay yourself First

• Principal

• Saving

• Savings

Accumulation of excess funds by intentionally spending less than you earn

• Saving

• Savings

• Time Value of Money

• Trade-off