Chapter 3:

Saving and Investing

What we’ll cover in Chapter 3

• Saving: The Time Value of Money

• Making Your Money Grow

• The Rule of 72

• Risk vs. Return

• Investments

• Paying Yourself First

Saving: The Time Value Of Money

•Time, value and the rate of return

• Simple and compound interest

Making Your Money Grow

72 The Rule of

What is it?

Risk vs. Return Diversification Risk tolerance

Investments

• Stocks

• Bonds

• Mutual funds

Paying Yourself First

10-year goals