When you buy a bond, you are lending money to its issuer either a company or the government, federal, state, or municipal, which agrees to pay it back with interest on a certain date, called the maturity date. Bonds are less safe than bank accounts or money market funds but generally safer than stocks . Brokerage firm A company that handles your stock trading. When you want to buy or sell shares of a stock, you contact your broker and he or she arranges it. The brokerage firm also provides you with statements that you ll need at tax time.
Brokerage firms focus on individual stocks and bonds.
Some brokerage firms offer mutual funds , but you'll generally pay more than you would at a low-cost mutual fund company. What's left at the end of the month after you've paid all your bills and done all your spending. To find your cash flow, add up all of your expenses for a month and subtract that number from your monthly income. Knowing your cash flow is key to setting a monthly savings goal. Closing costs The additional costs typically involved in purchasing a piece of real estate.