best investment plan to save my money??

**jIM_Ohio** · 05-24-2010, 08:49 AM

When you get paid, set aside a fixed percentage every paycheck from what you earned BEFORE you pay any bills or spend any money.

For example, an above average savings rate is 20%. If you make $1000 per paycheck, then put $200 into some type of savings account.

The success of most plans will depend upon the savings rate. The place you put money (real estate, stocks, savings accounts) will matter less than the actual rate you save.

**snafu** · 05-25-2010, 08:40 PM

My initial investment plan was simple and do-able. I took $500. from pay and opened a Mutual Fund a/c with a firm like Vanguard. I authorized a $50. automatic transfer from bank to MF starting with their Index fund [called DCA dollar cost averaging]. When I got a raise, I took $1,000. in savings and opened a Dividend Fund and authorized $50. DCA for that stream with the same MF Company and have all dividends re-invested. Over the years I've added other funds from that company and others always aware of fees [MERs]. When the market does stomach churning drops I stick to my plan and view the purchase as 'on sale. When the market bounces up I sell a % of winner and add the sum gained to another fund in an attempt to create balance. Yeah, friends and MF agent think my RISK level is around 8 but I'm willing to wait for recovery.

Because the money comes out of the account automatically, I've never missed it and add any X-tra sums from time to time. When a planned trip to Las Vegas fell through, I used the sum I had planned to spend and bought a Resource Fund that's been a rollercoaster.

I've bought a few stocks with mixed success. There are no ethics in business and even the banks prevaricate.

**aiyana** · 05-25-2010, 11:14 PM

Hi
Thanks for the great information..

best investment plan to save my money??