I spent a few hours on Saturday in Cincinnati with my grandparents. And while on the way to pick up some lunch my grandpa gave me some investing and saving tips. This isn’t the first time he has volunteered such information, but I’m always grateful when he takes the time to explain something to me.
He has a lot of knowledge to share. He started working at a very young age at the Goshen Dairy in New Philadelphia, OH. During WWII he helped track down an escaped prisoner and murderer in the swamps surrounding New Orleans. And later as a vice president of Price Brothers he helped on the Great Man-Made River project.
So, needless to say, Grandpa knows a thing or two about saving and making money. He has been smart with his finances, buying every house except for the first two he owned with cash, and never having a car loan. Here are a few of the tips Grandpa has given Ruthanne and I over the last few years:
- Have enough savings in the bank to live for 3-6 months.
- Put some of that savings in CDs.
- If you have $100 to invest, buy two CDs instead of one, that way you will be penalized less if you need the money early.
- Don’t automatically renew CDs – look for the best rate each year.
- Live in a house for at least 5 years before selling.
- Invest in the stock market
- Chose different types of stock: electronics, communication, gas/electric.
- Reinvest the dividends.
What tips do you have for saving and investing?