"You can have anything you want, but you can't have everything you want."
Rich Flores, Life 101. Retrieved October 31, 2003, from http://www.richflores.com.

Every choice is attached to a consequence. Anything is achievable, but you'll have to sacrifice something else to reach your goal. Want a comfortable and worry-free retirement? You may have to work for an organization that does not pay as well as others, but has a good pension plan. The other side of that decision is to work for high pay at an organization with no retirement benefits and put away money in a Roth IRA. You'll have to make those choices over an over again, for education, business ownership, or any other major goal that requires a lot of money.

Save or Invest?
One way to get to goals is by saving part of your income in a bank savings account. Another way is by investing your money in stocks, bonds, treasuries or mutual funds to grow over time.

An effective financial plan includes both saving and investing. In general, investments grow larger over time than savings, but with more risk. In fact, the larger the risk, the greater the reward. Investments need a little more attention than savings. There are so many advantages to investing, it has its own section on this site.

Why Save?
Saving money will help you reach your important medium- and long-term goals. (Short-term goals, like a weekend get-away, are generally part of your budget.) Saving also provide a cushion to provide for unexpected expenses.

Medium-term goals

• automobile purchases
• home decorating, furnishings, appliances, and electronics
• major vacations and celebrations
• education for yourself or your spouse

Long-term goals

• purchase of a home
• education for your children
• purchase of a business
• retirement

Emergencies and unexpected expenses

• separation from service or employment
• major home and auto repairs
• a death or serious illness in the family
• a family wedding that requires travel, clothes and presents
• replacing major appliances

Getting Started
The sooner you get started saving, the more money you have when you need it. No matter how tight your budget, save something. even a small amount helps.

Automatic Savings Deductions
The best way to save is not to have the money available in the first place. You can have money automatically deducted from your paycheck. You never see the money in your checking account, so you don't think of it as spending money.

You can put your money in a savings account or in a Certificate of Deposit, which pays more interest, but has penalties for early withdrawals. Money-market accounts offered by some banks and credit unions also offer higher interest than regular savings accounts. Money magazine and Kiplinger's Personal Finance magazine usually list the top five taxable money-market accounts each month. They will usually have minimum initial deposits of only $1,000.

Shop around for the best deal from a bank or credit union. You may prefer to work with an institution that offers special-purpose savings plans such as Christmas, Holiday, and Vacation clubs. Or you may want to go with the bank or credit union that pays the highest effective interest rate with the most frequent compounding.