Now that you've figured out your financial position, it is time to make some investment decisions. Write down your goals. There are many types of investment vehicles, each with different objectives designed to suit different savers' needs. If you are drowning in debt, plan to eliminate most of the debt before starting to invest. Your income tax refund could be used as a source to reduce debt.
Debt consolidation is another good option.
Thus, you should not let large amounts of money set in a savings account. Shop around for the best interest rates. The more often the interest is compounded, the better because you will earn interest on the interest more frequently. Table 1 shows how the different methods of compounding can increase your savings. A bond is a long-term debt instrument.