is there a diffrence to emergency fund and savings fund?
553754
Good for you for saving!  Too few people do that these days.\n\nBoth emergency and savings should be in a savings account or a VERY low risk mutual fund, where you can get to them pretty quickly if you need them.  They are designated as such by you, not the bank.\n\nAn emergency fund is just what it says - money you keep around (in an account, of course) for emergencies - unexpected medical bills, unexpected car repairs, etc.  The key here being UNEXPECTED expenses.  \n\nA savings fund is what you use to save for higher cost items that you want to purchase (TV, computer, newer  - never NEW - car, home).\n\nIn addition to these, you should be accruing CASH in seperate envelopes for things you buy fairly often, but not necessarily every week (auto repairs, home repairs, clothing).  That way, when your're ready for some new clothes or it's time for the oil change, you have the cash on-hand.\n\nIt sounds like you have a good handle on your finances.  If you want more tips and advice, check out one of Dave Ramsey's books from the library ("Financial Peace" or "Your Total Money Makeover").
1021423
it's like additional money you have in your account that you can use if need be\nyou have overdraft fees though if you go below\nyour balance and have to use this overdraft
388563
It's totally up to you. Most planners recommend 6 months. I usually recommend 12months; Why? Because you just never know how life is going to go for you.\n\nHaving 12 months of living expenses, means you are always in control. So if you lose your job (or quit), involved in an accident, or need to look after a relative (or other loved one) you can take the time you need to look for another job when you are ready- no pressure to take the first thing because you need it.\n\nANY emergency fund is a good one, the more you have the more flexible you can be, and yes it means other things are being left out - like retirement etc.\n\nConsider this: Put away as much as possible to get 3 months of emergency funds - now you have a base. Halve the amount you were putting away until you reach 6 months - now you have a better base. Now halve the amount again until you reach twelve months.\n\nAnything more than twelve months would probably be overkill - at least for an emergency fund. 'Most emergencies' would be over within 3 to 6 months. There 'MAY' be the odd 6 to 12 month emergency - like a disaster - take Katrina for example - You just never know.\n\nYou can visit my website, where you can get a free budget planner.\n\nGood Luck!
41962
Go to bookstore and get Mutual Funds for Dummies or Investing for Dummies.  They will have easy to understand concept and descriptions.  More information is better when it comes to investing.  Take your time.  Start saving money now and get into the habit.  Put it into a savings account now while you are learning about mutual funds.  When you feel ready, then you already have some money saved up.
613385
You should first set aside some money in an emergency fund in a savings account...in my region you can earn about 3.3% on a money market savings account.  This money is liquid and you can access it at any time.\n\nOnce you've done that, you should determine what you're saving for.  Is it for a particular purchase, such as a down payment on a house?  Or is it for retirement?  If it will be invested short-term, you might look into Certificate of Deposits offered by banks...interest rates have climbed substantially from where they were 2 years ago.  Or if for retirement, I recommend a Roth IRA.
852248
Yep, the instant savings mean that the amount will be taken off imediately.  Dell and computer ppl do that alot.
1011033
There isn't one. If your son is an infant, you have a minimum 16 year time horizon before you would need the money. A savings bond will simply keep pace with inflation and will not grow. If you're a conservative investor, you should consider putting $25+ per month into a moderate allocation fund like Vanguard Wellington. It's a conservative mix of bonds and stocks that's more likely to yield your child something more meaningful down the road.
237410
it seems everyone has already defined the two for you, so I will just add :\n\nWhole life insurance - the savings portion of it is actually not in your best interest, if you are wanting savings and insurance, then I recommend opening a seperate RRSP for your savings, or even mutual funds or common sense funds, you get a better rate of return, and every cent you put in you will eventually be able to receive back.  The idea of savings is so you can retire, but essentially savings should be seen as 'the rainy day' so if you die prematurely your family can use the savings to live on especially if you are the primary wage earner.  THat is why Term life is so advantageous, the rates are cheaper, you can fix them for 10yrs with renewal, or even 15-20yr terms generally the terms are flexible because you only want the insurance until you have the savings.  Once you have the savings behind you, then you give up the insurance.  Insurance is meant for those with high needs, mortgages, dependents, debts, education etc but a well planned diverse portfolio will provide you with better benefits than a whole life plan that charges you way to much for premiums and a savings program that doesnt give you back what you put in, much less a rate of return on your money.
829493
Hello,\n\nTechnically you've just got yourself into one deep hole. You will be paying interest on your overdraft, so to use cheques to put money if a different account was a really bad decision; as the amount of interest you receive for the money being in the basic account will be lower than the overdraft interest rate (almost guaranteed).\n\nIf the financial provider has realised you own both accounts, they may be taking the money you have in your basic account to pay your overdraft. An overdraft is a feature which can be pulled whenever the provider wants too, and you have to pay the balance when they do this.\n\nYou need to contact your bank and find out whats going on, then you need to clear your debt, then you need to start saving for an emergency fund; just in-case you lose a job in the future. (Recommended: 3 months salary into a savings account).\n\nAn overdraft is a useful tool, if its kept in good standing; you have abused it so you will struggle to get borrowing products in the future... Unexpected events happen, some good and some bad; and you really need money to help keep your mandatory expenses paid.\n\nTechnically what you have done isn't illegal, it's just created a big problem you didn't need.\n\nGood luck with sorting the situation and finding a new job.
38386
Both are essentially the same. Get the one that gives you the most for the least money.
137696
First, start an emergency fund...$1,000 put aside for emergencies.  Second, don't EVER apply for credit cards!  Third, invest a little of it in a good mutual fund. Fourth, buy a pony.
1167407
From a Financial Aid perspective, 529 savings plans will get you the most bang for your buck. They're incredible college savings tools (a) because the distributions are tax-free and (b) because of the way they are treated when a student applies for Financial Aid at the college of their choice. \n\nSo, why is a 529 savings plan better (from a Financial Aid perspective) than, say, a savings account, a share of stock, or setting up a trust fund? Well, as you may know, the federal Financial Aid application (FAFSA -- http://www.fafsa.ed.gov ) asks a variety of questions about the family's income/assets as well AND about the student's income/assets. The aim of the form is to ascertain a family's ability to pay for college by calculating what we refer to as an EFC or "Expected Family Contribution." However, different items on the application are weighted differently: for example, income and assets in the student's name are weighted more heavily than income and assets in the *parent's* name. So, if one of your children had $10,000 in a savings account, this money would be "held against him/her" much more than if that same $10,000 was in *your* name. Now, although the student is the beneficiary of the money from a 529 savings plans, the Dept. of Ed. has deemed that 529 Plans are considered assets of the *parent*. This means that these assets are "sheltered" significantly more than other assets of which your son would be the beneficiary (for example, a trust fund). Even better: in some cases, an asset in the parents' name might not even count against you at all (depending on your age and the value of that asset). \n\nAs for which 529 is best... here's a nifty site that will help you compare different plans: http://www.savingforcollege.com/compare_529_plans/
909846
The main difference is that ETFs track an index, and for various reasons they trade at almost exactly their NAV (Net Asset Value, the value of the stocks held by the fund).\n\nClosed end funds are like ETFs in that their shares trade on the open market, but they don't follow an index. They are "actively managed." For various reasons, they may trade at a "premium" (the share price is higher than the NAV) or a "discount."
923439
This is going to seem odd but use the ones that come free with your checking and savings accounts and stay debt free. Having done both worlds: debt and debt-free, I can tell you debt-free is much better. It is very rewarding to walk in a pay cash for a car, take a nice vacation with cash, etc, etc.\n\nThe only exception is a house and if you're a real go getter you can even do that debt free.
193361
I just finished investigating the same thing for my niece 3 weeks ago.  I believe the Coverdell ESA is a better savings plan, but call your bank or a local bank and find out the interest on the Coverdell.  I'm in NJ so your interest may me better or possibly worse off. Good Luck.  Good idea.
1180578
he best way for you to invest depends on a lot of things.\n\nFirst, if you don't have an emergency fund worth 3-6 months of expenses, establish one first, maybe in a money market fund so you can get at it in an emergency. It won't pay back much, but it's better than having to borrow money in an emergency and getting into debt because your money is locked up. Nor do you want to sell your investments during a temporary downturn to pay for something like a new roof. Then you'll have lost that money permanently.\n\nNext, if you haven't done the 401(k) thing and the IRA thing, do it. Tax-free or taxed deferred savings are good.\n\nFinally, if you've already done all those things and still have money left to invest, there's still more stuff to think about. Long term, stocks will grow faster than anything else, but can be very risky short term. They're a terrific investment if you're young and have a long time line. If you're older, you have to think more about safer investments, because you don't have as much time to recover from a downturn in the market.\n\nAnyway, there is no "best" way to invest a sum of money. What's best depends on a lot of different circumstances. If you really want a good investment, go buy a book on investing so you can decide what makes sense for you. Sure, you could give your money to a financial advisor but how do you know he's not just in it for the fees and commissions he charges you? How do you know his advice is any good? You need at least a foundation so you can make an informed decision. Personally, I like "The Only Investing Guide You'll Ever Need" by Andrew Tobias. It'll give you the basics. Good luck.
471470
Yes.\n\nI buy the things I need, when I need them. Buy used whenever it makes sense. Return things I do not use. Save for the things that are important to me, and make sure I have enough emergency funds to be in control of my life at all times.\n\nGood Luck!