Money is a curious commodity. Everybody wants it, everybody needs it, everybody tries to save it, but as we all know, money flows like water down an open drain and it disappears like it's a prop in a magic act, now you have it, now you don't.
When it's time for retirement, and you are calculating your savings, your investment income, retirement income, the equity in your home and/or other real estate, what you thought was there, and what is actually there, may be less than you have anticipated. Now what?
Your money doesn't have to go the way of water down an open drain, and it certainly doesn't have to disappear on you, but you have to be smart with it. You are the key to keeping and saving what you earn and making it grow. What you do with your money determines what you will end up with.
You have to determine when to plug the drain and when the magic act is over, but you should not wait until the last minute or until it is too late.
Everyone of us has the capacity to make wise choices with the money we earn. There are many options, from employer stock offerings and 401k plans to private investment opportunities like starting a business, buying a business, or investing in real estate.
Most people can make savings and other assets grow over time if they invest sensible and not take unnecessary risks with their money. At times, risk may be a good thing and a lot of money can be made by taking risks, but there are also ways to make money by putting the money in conservative investment vehicles.
Important factors to watch are business cycles. Business cycles are periods in which the economy starts growing from a standstill, or near standstill, and gradually grows, through periods of inflation and recession, and ending in years of rapid growth in all segments of the economy.
After a few years of growth, controlled in part by governmental agencies that apply checks and balances with interest rate cuts and hikes, the cycle usually bottoms out after 10 or 12 years and prices of stocks, real estate, and other investments become stagnated or decline.
You should always do the research before investing in anything. The best way to make and save money is by understanding the market in which money is being invested, and by keeping close tabs on all spending and liabilities, all of the time.