Financial Literacy Month Series: Smart Saving & Investing

Smart Saving and Investing

There are many hurdles to reaching your financial goals, but smart saving and investing don’t have to be one of them. Keep reading to learn the basics of investing and how to get started.

Start Early and Be Consistent

The key to smart saving and investing is to ensure your money has time to grow. To reach your financial goals compound interest is your best friend. To get the full benefit of compound interest you need to have your money invested for a substantial amount of time.

If you haven’t started yet, don’t feel discouraged it’s never too late to start investing for your future!

Along with starting early, it is important to be consistent. You will not see the type of returns you want if you only invest occasionally. Setting up auto-payments or systematic investment plans (SIPs) is a great way to ensure that you consistently work toward your goals.

Goals, Risk Tolerance & Research

When starting your smart saving and investing journey, you must create a plan first.

  • What are you saving for? What is the end goal?
  • How much money do you have to fund the investments?
  • What is your threshold for risk? How much loss can you sustain?

After you create your plan, do your research. Learn the basics of investments and stay up to date on financial news.

Be Diverse and Keep Track

To help lower your risk, it is important to have a diverse portfolio. If the market is unstable, having your money in a diverse set of investments can help lower risk and potential losses.

Once your investments are diversified, keep track of how they are doing. This allows you to adjust your strategy and better achieve your goals.

Should you have a Financial Advisor?

If this all seems like a bit much to handle, seek the help of a professional. They can provide you with insight and guidance based on an understanding of your unique situation. Just so you know, as a member of South Metro FCU you can get a complimentary, no-obligation financial review utilizing financial planning software, available through CFS*.

Finally, reach out to Kristin Chim (Certified Fund Specialist Financial Advisor) at our Prior Lake branch or 952-445-0888, ext 719

Check out these quizzes and worksheet below to get started on your investment journey!

Investment Calculator

Learn how your return is impacted by increasing your investment. This calculator shows you how altering your investment by two or three percent in a few years makes a big difference to your overall investment: https://southmet.cusonet.com/investing-calculator/

Create SMART Savings Goals

Check out this fillable worksheet from the Consumer Financial Protection Bureau to figure out your goals so you can actually achieve them.

Quiz your investment knowledge in these quizzes

https://www.investor.gov/additional-resources/spotlight/investing-quizzes/september-2022-quiz

https://www.investor.gov/additional-resources/spotlight/investing-quizzes/january-2023-quiz

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principle. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.

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