Save for the Lifestyle you want, not the one you have - December 2005

Once you have three to six months living expenses saved - this money should remain in your high interest savings account indefinitely, just in case - you should consider your next financial goal. You've already established a savings regime so keep up with it, only now consider investing this money in another way.

Purchases such as a home or a new vehicle can be good investments as long as you are prepared for the maintenance. If these expenditures are frightening to you now and you are happy with renting a home and leasing a vehicle, then take heart: your hard-earned money can still be put towards a good investment without leaving your wallet. And instead of building in a high-interest savings account, there are other options to earn more interest.

There are many ways for your money to take the high road, including investing in GICs or savings bonds. And for those who crave the adrenaline rush of risk, there are always stocks and mutual funds. While it may sound Greek to you, these investment strategies are all quite simple to initiate.

Take a GIC for example. It is a guaranteed investment certificate, meaning it is a low risk investment but there is no possibility of your money decreasing in value because it's guaranteed. You can choose from a variety of terms, from a minimum of 30 days to five years, and sometimes longer (though it is rare).

Let's say you invested $5000 into a GIC for two years at an interest rate of 2.35% (current market value). When the GIC matures after two years, your $5000 would now be $5470. This is nearly $500 earned on your money. And there is no reason for concern: because the rate is guaranteed, so is the return on your investment. GICs are a simple, risk-free way to step into the world of investing without fear.

With the stress associated with the many decisions you will have to make in the years to come, why not make an easy one now? If you have money you have no intention of spending, why not make your future a little more lucrative start investing today. At this point in your life you are at an advantage: time will grow your money for you.