Research and Describe Classification on How to Save Money

Classifications of Saving Money
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October 6, 2016
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Saving money is very important these days. The rising price of goods and necessities just emphasizes this fact. However, despite all the mantras and guides out there about how to be thrifty and resourceful, we must admit that cutting some of our expenses to save is not as easy as it looks like. Buying a new pair of shoes, a high-end phone, or another pair of pants just gives us more satisfaction than investing in a hedge fund. This is perhaps the biggest issue that we all have why we run out of resources whenever the dire need arises. Our mindset that is oriented in buying what we want when we want it is the biggest enemy of our road to financial stability. Thus, knowing this fact, I’ve classified some saving options, namely, they are (1) Savings account, (2) Certificates of deposit, (3) Real estate, and (4) commodities (Hartman, n.d.). The first and most common type of saving method is a savings account. This is where you open an account in any bank. The funds that you deposit can safely accumulate interests through time (gradually). The second type of savings that we have are certificate deposits. Also known as CDs, this method is based on an agreement between the bank and the client regarding the time in the future when the client can withdraw his own funds. The interests here is safe and much higher, but the time usually takes 5-10 years. Out third type of saving method is real estates. As a type of investment, real estates can offer a way to save money while investing. The returns for this could be higher or lower to the original price of the estate depending on market conditions. Lastly, we also have commodities a...