Remember to replace the money you use, and resist the temptation to use the fund for undisciplined spending. Save for major purchases in a bank CD, a government-security mutual fund, or treasury bill. Invest to meet long-term goals. Investing for long-term goals calls for a diversified investment portfolio. Money-market funds, mutual funds, real estate, bonds, and international equities may all be part of the picture.
Speculation carries a significant amount of risk.
Speculation demands time and willingness to research and become actively involved in the investments themselves. Speculate only if and when you've effectively completed steps one through five and you have a temperament that allows you to take risks. Before beginning any investment program, think about what you want to accomplish. The process may seem slow, but stick with your strategy. All rights reserved.