Conservative Mutual Funds

Conservative mutual funds are attractive to investors who have enough money that they aren't worried about "making a killing in the stock market". Typically, these investors are looking for secure retirement income, trust fund money for children or grandchildren, and a long term investment. Often called income funds or growth and income funds, these mutual funds are based on companies with a history of steady growth and excellent dividends. Income funds usually include not only stocks, but a strong bond component. Bonds are usually very secure and much more stable than stocks, so while they don't earn the amount of interest many stocks will, they also don't suffer from volatility.

Conservative mutual funds will pay 5-8% interest annually, in exchange for greater investor security. They aren't immune to the ups and downs of the stock market, but the fund managers tend to choose the most solid, stable companies and bonds to invest in. The number of companies represented by a mutual fund diversifies the investment, rendering it more stable than any one particular stock.

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How to stick to a household budget
and have extra
money for investing

1. Customize your budget with your current needs, wants and future goals in mind.

2. Try to think if your budgeting plan as a "spending" plan rather than penny pitching.

3. Sit down and rationally discuss budget goals and spending limits with your spouse. You are bound to disagree somethere, but it important to take the time to find common ground.

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