1. Review of Saving and Investing Head Section
In the saving and investing head section, you learned about some of the differences between saving and investing. These differences include: time, how earnings are made, and that you have the opportunity to make more money but may also take on more risk with investments.
You were shown some techniques on how to save. For instance, you learned that it's helpful to balance your checkbook, use a debit card instead of a credit card, manage your online account, and put money into a savings or money market account through your bank or credit union.
Before you start investing, you learned that it's important to develop a budget, have proper insurance, establish an emergency fund and understand the investments you are considering. There are also risks to be aware of, including purchasing power risk, interest rate risk, and market risk. You also learned ways to invest, choices of investments, and how to invest.
Knowing how to do these things is very important. Equally important is understanding how your emotions and thoughts may get in the way of you doing those things effectively. That's what the rest of this section will focus on.