1. Know the Difference between Fixed and Flexible expenses:
Flexible Expenses- Opposite of fixed expense, it is more of a luxury payment such as gas payments, food/grocery payments, or entertainment payments such as movie tickets or football tickets.
Fixed Expenses- A bill that is paid on a regular basis such as mortgage payment, car payment, loan payment, or rent.
2. What's the difference between Compound interest and Simple Interest?
Compounding interest- When adding money to your savings account it accumulates interest over a certain amount of time, compounding yearly in most cases and grows at a faster rate than simple interest.
Simple interest- simple interest gives us an idea of what the amount of money might be pain on a loan or what an investment will give us.
3. The importance of saving:
The importance of saving will help you out most in your future, setting aside a certain amount of money each month or year for your retirement will help you have a stable, liquid amount of money to rely on when your done working. Also saving money and putting it into a separate account could help you out if there ever is an emergency. My advice for anyone is to set aside a small amount of money every 6 months and that money can go towards buying a house or car for your future or even help pay college loans. It is okay to spend money now just as long as you have calculated your fixed and flexible expenses.
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