| How to Manage Pain After Knee Replacement Surgery Posted: 06 Jan 2017 04:00 PM PST A total knee replacement is a type of surgery whereby a diseased knee joint is replaced with artificial material, such as titanium and plastic. Severe osteoarthritis (the wear and tear type) is the most common cause for knee replacement surgery in the United States.[1] At least 600,000 knee replacements are performed each year in the U.S.[2] Due to its exceptionally invasive nature, knee replacement surgery can generate substantial pain post-op, so learning how to manage it is very important. EditManaging the Pain at Home - Rest and elevate your leg. Once you're discharged from the hospital, you'll be told to rest and elevate your leg for the first few days or so in order to help decrease swelling and inflammation, which also reduces pain.[3] While sitting on the sofa or a chair, prop your leg up with some pillows, but try not to hyperextend your knee and risk straining it — keep some flexion in the joint while resting. Consider putting a pillow under your knee at night while you sleep on your back to elevate the extremity.
- Total bed rest is not a good idea post-surgery because some movement (even in surrounding joints such as the hip and ankle) is needed to stimulate blood flow and healing.
- Wearing compression stockings can be another effective method for reducing achy pain and swelling, and preventing blood clot formation. Start wearing them day and night, then after a few weeks, switch to just while you sleep.
- There are two types of knee replacements: total knee replacements and partial knee replacements. Recovery from a total replacement takes longer — generally three to five days in the hospital and a recovery period lasting from one to three months.[4]
- Apply ice to your knee initially. While your knee is still in the acute phase (significant inflammation and pain), apply ice to it. The application of ice is an effective treatment for essentially all acute musculoskeletal injuries.[5] Cold therapy should be applied to the area around the incision in order to reduce the swelling and pain, particularly in the muscles. Ice should be applied for 20 minutes every two to three hours for a couple of days, then reduce the frequency as the pain and swelling subside.
- Compressing the ice against your knee with a bandage or elastic support will also help control the inflammation, but don't tie it too tight because complete restriction of blood flow could cause more damage to your knee joint and lower leg.
- Always wrap ice or frozen gel packs in a thin towel in order to prevent frostbite on your skin.
- If you don't have any ice or gel packs, then use a frozen bag of veggies from your freezer.
- Use crutches to move around. For the first few weeks post-surgery, try to use your crutches (which are typically supplied by the hospital) while walking around so as to not inflame your knee. Some knee mobility after a few days post-op is a good idea, but total weight bearing while walking should be postponed for a week or two until the muscles surrounding the knee have started to heal and gain their back strength.
- You should be able to resume most normal activities of daily living (including walking and bending) within 3-6 weeks following knee replacement surgery.[6]
- Some pain with walking and other knee movements, particularly at night, is common for several weeks after you've had knee surgery.
- If your right knee was replaced, then don't try to drive a car until you're fully recovered, which may take a few months. Your orthopedist will clear you when it is safe for you to drive.
- Take your medications as advised. You'll likely receive pain medication (either orally or intravenously) while in the hospital and then given strong prescription drugs to take home. These medications may include strong opioids, such as morphine, fentanyl or oxycodone, which may have to be taken for a few weeks.[7] Medication is an important part of managing your pain, so follow your doctor's instructions carefully and be aware that abuse of pain medications can lead to dependency.
- Alternatively, you may be given prescription-strength nonsteroidal anti-inflammatories (NSAIDs), such as ibuprofen or naproxen, or painkillers such as Tylenol #3. After a few weeks, you may be able to wean yourself to weaker over-the-counter offerings.
- Be careful not to take any medications on an empty stomach, as they can irritate the lining of your stomach and increase the risk of stomach ulcers.
- Pain-relieving creams containing capsaicin, menthol and/or salicylate may be of benefit also.
- Your doctor may also prescribe short-term antibiotics to reduce the risk of infection.
- Consider moist heat after the acute stage. After the inflammation and pain in and around your knee has largely subsided, then consider applying some moist heat. The application of heat causes mild dilatation of blood vessels and helps to alleviate any stiffness. Microwaved herbal bags work well and are often infused with aromatherapy (such as lavender) that has relaxing properties.
- With the permission of your doctor, soak your leg in a warm Epsom salt bath, which can significantly reduce pain and swelling, especially within muscles.[8] The magnesium in the salt helps the muscles relax.
- However, avoid soaking the wound in water until it has completely sealed and dried.[9]
EditSeeking Medical Treatments - Seek out physiotherapy. Physical therapy is an extremely important part of rehabbing after knee surgery and can begin as soon as 48 hours post-op.[10] after surgery. A physical therapist can show you specific and tailored stretches, mobilizations and strengthening exercises for your recuperating knee. Knee immobilizers are often used to stabilize the knee while undergoing physical therapy.
- Physiotherapy is usually required 2-3x per week for 6-8 weeks to positively impact a knee that's undergone surgery.[11] It will include a graduated walking program and knee-strengthening exercises.
- If need be, a physical therapist can stimulate, contract and strengthen your weakened leg muscles with electrotherapy, such as electronic muscle stimulation.
- For pain control, a physical therapist can use a TENS (transcutaneous electrical nerve stimulation) unit on your knee.
- Use a continuous passive motion machine. A device that can help speed knee recovery and reduce stiffness is the continuous passive motion (CPM) machine.[12] The CPM machine is attached to the recuperating leg and automatically moves the knee through various motions for up to an hour or so while the patient relaxes. This type of passive exercise can improve circulation and reduce the risk of scarring / contracture of the soft tissues surrounding the knee.
- CPM exercise machines also help to prevent blood clot formation in the legs.
- Some physical therapists, occupational therapists and physiotherapists (rehabilitation physicians) have CPM machines in their office, but not all of them.
- Consider infrared therapy. The use of low-energy light waves (infrared) is known to be able to speed up the healing of wounds, decrease pain and decrease inflammation.[13] Use of infrared radiation (either through a hand-held device or within a special sauna) is believed to penetrate deep into the body and improve circulation because it creates heat and dilates blood vessels.
- In most cases, significant pain reduction can start within hours after the first infrared treatment.
- Pain reduction is often long lasting, weeks or even months.
- Practitioners most likely to use infrared therapy include some chiropractors, osteopaths, physical therapists and massage therapists.
EditUsing Alternative Treatments - Try acupuncture treatments. Acupuncture involves sticking very thin needles into specific energy points within the skin / muscle in efforts to reduce pain and inflammation and to potentially stimulate healing.[14] Acupuncture is not commonly recommended for pain control post surgery and should only be considered as a secondary option, but anecdotal reports suggest it can be helpful for many different types of musculoskeletal injuries. It's worth a try if your budget allows for it.
- Based on the principles of traditional Chinese medicine, acupuncture reduces pain and inflammation by releasing a variety of substances including endorphins and serotonin.
- Acupuncture is practiced by a variety of health professionals including some physicians, chiropractors, naturopaths, physical therapists and massage therapists — whoever you choose should be certified by NCCAOM.
- Get a deep tissue massage. Knee replacement surgery involves cutting into the muscles surrounding the knee joint in order to clean it up and resurface the ends of the bones. As such, the muscles experience severe trauma, which leads to inflammation and spasm post surgery. A deep tissue massage is helpful starting a few weeks after surgery because it reduces muscle spasm, combats inflammation and promotes relaxation.[15] Start with a 30 minute leg massage, focusing on your thigh and hamstring muscles. Allow the therapist to go as deep as you can tolerate without wincing.
- Always drink lots of water immediately following a massage in order to flush out inflammatory by-products and lactic acid from your body. Failure to do so might cause a headache or mild nausea.
- Experiment with vibration therapy. An interesting alternative option in managing musculoskeletal pain is vibrational therapy. Vibrating frequencies seem to relax and strengthen musculature while stimulate nerves to reduce pain. In terms of knee pain, you can vibrate primarily the knee area or the entire body — both have proven effective for reducing knee pain.[16]
- Full-body vibrating machines are difficult to find in rehabilitation facilities and likely too expensive to buy for home use, so consider smaller machines that vibrate your feet and/or lower legs.
- A hand-held vibrating massage device is another option that may work well to stimulate and reduce pain in the muscles around your knee.
- You shouldn't squat, jump, twist or kneel on hard surfaces within a few weeks after knee surgery.
- Most people walk using crutches for three to four weeks then use a cane for two to three more weeks before they're able to walk normally.
- Most patients achieve 90 degrees of flexibility (bending the knee to a right angle) by the second week after surgery and end up with greater than 110 degrees of flexibility in the end.[17]
- Recommended exercises and activities following your knee surgery (give it at least a few weeks) include: swimming, water aerobics, cycling and dancing.
- Contact your doctor immediately if you experience the following signs of infection: fever greater than 100°F (37.8°C), shaking chills, pus drainage from the incision, increasing redness, swelling and/or pain in the knee.[18]
EditSources and Citations
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| How to Stop Snacking Between Meals Posted: 06 Jan 2017 08:00 AM PST If you're trying to cut back on your snacking, take a moment to consider that nearly 94% of Americans snack at least once a day.[1] It can be difficult to cut back on snacks when it is such a prevalent part of a culture, but once you take measures to change your habits, you might find it's not as difficult as you thought. EditEating Well at Meals - Eat three, well-rounded meals a day. Meals that have a variety of nutrients are more likely to satisfy the cravings your body has. It is very important to make sure your meals are balanced, so that you ensure you do not have cravings for snacks.
- Make sure to consume quality proteins, fats, and carbohydrates at lunch, not foods like fast food. These can help carry you hunger-free throughout the day.
- Try to include foods like avocado. Avocados have been shown to help people feel full longer. Research has shown that people who eat an avocado during their lunch reported feeling nearly 25% more satiated after their meal.[2]
- Be sure to eat breakfast. Breakfasts that are high in protein were not only observed to increase satiety in the morning, they also helped people to feel more full in the evening. Try to eat at least 35 grams of protein with breakfast, in order to help you feel more full throughout the day.[3] Some ways you might work protein into your breakfast:
- Include an egg.
- Start your day with yogurt.
- Have a protein shake.
- Eat dinner later, and center your meals around foods like rice and beans, and meat. It is very important to time your dinner well, so that you have time to digest the food, but don't end up hungry before you go to bed.
- Eat soup.
- Bulk up with a salad.
- Add some soy. A compound in soy has been found to suppress the appetite. This can help to control your cravings.[4]
- Eat high-protein diets to help you feel full longer. Protein takes more time to digest. This can help your meal to last in your stomach.[5] Check the labels on your food when comparing items in the grocery store. This will allow you to select foods to stave off hunger.
- Try eating healthy foods that are extremely satiating. Foods that are high in fiber may enhance satiety.[6] These are foods that help you to feel full, such as oatmeal, grapefruit, or popcorn. They can help prevent cravings in between meals.
- Choose fats that are better for your body. Such fats as those from nuts and olives can help you to feel full longer. Avoid saturated fats, as they can increase your desire to snack.[7] Many junk food items are high in saturated fats, and they contribute to a vicious cycle of craving.
- Fats have more calories per gram than any other macronutrient. That being said, they help sustain you and improve satiety greatly.
- Make your meals longer. Take your time to chew your food to help ease digestion. It can also give your body time to let you know that you are full. Research indicates that people who chew more slowly feel less hungry.[8]
EditKeeping a Food Journal - Keep a food journal.[9] Write down everything you eat each day. This will help you to gain perspective on your food intake, enabling you to make a plan to change it. Taking time to and think about when, how, and what you eat can be key to controlling how you consume. Mindless eating can be a huge part of snacking and unhealthy eating habits.
- Get a notebook.
- Record where, when, what, and, honestly, how much you eat.
- Note how you feel.
- Write down your definition of "a snack". Research shows that what a consumer defines as a snack plays a marked role inhibiting conceptualization the behavior.[10] If you don't understand it, it becomes a lot harder to fix. Draw your boundaries. Define what you feel makes a snack.
- Plan out exactly when you will eat. Specific times for breakfast, lunch, and dinner, with at least three to four hours in between each time you eat. Creating this schedule for your dining experiences can help you to plan around when you get hungry. Use your food journal to figure the best times for you to eat.
- This is crucial, especially when starting out, to ensure that you have your meals planned out and spaced apart so that you are not left with extra food to eat at the end of the day, or worse, no food at all.
- Analyze your food journal.[11] Find out when you eat most, and then, more importantly, what are you picking up for a snack in between meals. This way you can pinpoint your targets. Few things can beat a well-thought out strategy.
- Watch for patterns.
- Check for variety.
- Be positive. This is how you support yourself.
- Cut out one thing at a time. You don't have to stop snacking altogether. Even if that is your eventual goal, starting small can provide goals that are easier to achieve. Think of it as a series of little battles, not an overwhelming war.
- Start slow to help ease into your new habit.
- Try eating half your snack, at first.
- Skip eating the snack entirely for one day, and then do the same the following day. After seven days, you might begin to realize you really didn't really need to eat it. The next week, pick another food to eliminate between meals.
EditDeveloping Habits to Stop Snacking - Chew gum. Gum can help you to feel like you're eating. It can also help you to overcome an oral fixation. The flavor combined with occupying your mouth can help curb your desire to eat. Look for sugar-free gum, if you're watching calories.
- Drink coffee or tea. Caffeine can not only help get a boost of energy when you are feeling sluggish, but it is also an appetite suppressant. When you feel a craving for a snack, try having a cup of coffee or tea instead. It will give you a little boost, and can help to carry you to your next meal.
- Get some exercise. Not only is exercise good for your body, it helps to reduce cravings for snack food. Both moderate and vigorous exercise lasting fifteen minutes have been found to help reduce snacking.[12] Think of all the fun ways you can reduce your desire to snack. Plus, if you give in to a craving, having burned off all those calories can help you not to feel as bad.
- Play an active sport.
- Find a local gym.
- Sign up for martial arts or yoga classes.
- Go dancing.
- Do something that occupies your hands, like drawing.
- Get some sleep. Especially late at night, sometimes the best way to avoid seeking out that late-night snack is just to go to sleep. Naps are also a great way to avoid suddenly finding yourself elbow-deep in a bag of chips.
- Drink water whenever you have an urge to snack. Water can help you feel full, eliminate false hunger, has no calories or guilt. This can help you gain self-control, improve your skin, and better your health overall.[13] Water is especially important if you're eating a high-protein diet to curb hunger, because it is an essential part of its digestion. If you also getting more exercise, and drinking more coffee to help stop snacking, you'll need it to avoid dehydration.
- Carry a water bottle.
- Make sure to drink a glass of water, or two, at a restaurant.
- Try sparkling water.
- Seek out the disgusting. Smelling something you find repulsive can kill your appetite. When you find yourself craving a snack, take a big whiff of garbage or vinegar. Cleaning the litter box or the toilet is not likely to leave you salivating.
- Wear a rubber a band around your wrist. Snap it when you have a craving. This helps develop an association between the negative sensation and the desire to snack. After building up this association over a long time, it can help you to control your desire to have a snack.
- Imagine you ate. There are a number of new diets that involve imagining away your cravings. [14] Related to the reasons that your tenth piece of chocolate is not as satisfying as your first, it is possible to imagine you already ate nine pieces and reduce your desire overall. Try imagining that you already ate your snack, in fact, you just ate the whole box.[15]
- This may, at first, cause you to salivate (the "whetting effect"), but soon habituation will kick in, and you won't feel like eating as much of your snack as you did initially. You may not feel like snacking at all.[16]
- For this to work, you must imagine yourself eating the exact food you are trying to avoid, and in a large quantity.[17]
- Occupy yourself. It can be easy to forget you're hungry when you're busy doing something challenging and/or enjoyable. Try picking up a hobby, or doing something productive. Switch out your bad habits for good, new ones. This can be a great way to control unhealthy eating habits.[18]
- Clean the house.
- Call a friend.
- Go for a walk.
- Get hypnotized. Hypnotizing yourself, or getting hypnotized by a professional, can be an effective way to manage behaviors you wish to change. Research shows that hypnosis can provide significant benefit for those trying to reduce unhealthy eating habits.[19] Find a hypnotherapist in your area, or look for a weight-loss hypnosis CD online.
- Ask friend to help sponsor your habits. Choose someone you know will be there for you when you are unsure you can succeed. When you feel a craving, give them a call and let them talk you out of it. You can even share a meal together, and all the talking you do will help you to eat your meal more slowly, leaving you feeling more full.
- Never snack while watching T.V. This inhibits food intake recall; you won't remember how much you ate, and you'll keep snacking.[20].
- Avoid things that trigger your desire to snack.
- Brush your teeth earlier than usual, to help curb your desire to snack in the evening.
- Consult your doctor before starting to make major changes to your diet, in case you are required to eat in between meals for medical reasons.
EditRelated wikiHows EditSources and Citations
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| How to Do Your Own Financial Planning Posted: 06 Jan 2017 12:00 AM PST A financial planner is someone hired to help you plan for a specific goal like retirement or investments, or someone who advises on various financial topics, including taxes, saving, insurance, and more.[1]While it is always wise to consult a financial planner before making complex financial decisions, learning to do your own financial planning can not only allow you to understand and control your personal finances, but save money in fees paid to a professional. EditSetting Financial Goals - Determine what your key personal and financial goals are. Before you can create a solid financial plan, you need to be clear about your goals. Common financial goals include: planning for retirement, paying for education, purchasing a home, creating an inheritance for beneficiaries, or developing a financial "safety net" to guard against unexpected expenses, disasters, or life changes.[2]
- You can find templates for worksheets to help define your financial goals by searching online.[3]
- Be accurate in your goals you want to accomplish. Ensure your goals adhere to the SMART acronym. That is to say, specific, measurable, attainable, realistic and timely.
- For example, you may not be saving any money and your goal is to save more. Changing this goal to save 5% of your of your monthly income is not only specific, but it is also measurable (you can easily tell when you have achieved it or not), and likely attainable in a reasonable time frame.
- Write your goals down. This not only ensures you will remember them, but it keeps you accountable. A good system is to write short, medium, and long-term goals.
- Determine how much you will need to achieve your main goals. For a financial plan to be successful, it is essential to quantify your goals. That is to say, take a specific goal, and translate it into a dollar figure.
- For example, a common financial goal is retire by 60 or 65. Although it is often stated that 70-80% of current income is a reasonable goal for retirement income, others have suggested 50-60% of income for couples, and 60-70% for singles is more reasonable. [4]
- If you are currently making $80,000 per year and are single, your retirement income should be around $40,000 per year using the 50% figure above. This would be an example of translating a goal (retire by 65), into a specific dollar figure ($50,000 per year of income). Once this amount is known, it is possible to create a plan to determine how much money saved and/or invested you will need to supplement your other sources of retirement income to hit the $50,000 year mark.
- You can find templates online to help you calculate your needs for retirement and other goals.[5]
EditDetermining Your Current Financial Situation - Calculate your net worth. Net worth is defined as your assets minus or liabilities (or what you own minus what you owe).This figure will give you a precise sense of your current financial position, and can help you make good decisions and achieve your goals. You can create a simple worksheet to calculate your net worth, or find a template online.[6][7]
- Begin by creating two columns, one for assets, and one for liabilities.
- List your assets. An asset simply refers to anything you own, and can include things like cash on hand, savings and checking accounts, retirement funds, real estate, personal property, investments, etc.
- Next to every asset, list the value of the asset. For example, if you own a house, list its value. The same would apply things like a stock portfolio, or a car.
- Add together the values of your individual assets to find the total value of your assets.
- List your liabilities. A liability refers to any debts you owe. This includes things such as a mortgage balance, credit card debt, student loans, car loans, personal loans, etc.
- Add together the amounts of your individual liabilities to find the total liabilities amount.
- Subtract the total amount of your liabilities from the total value of your assets. This number is your net worth. If the number is negative, it indicates that you owe more than you have.Conversely, if you have $100,000 in assets, and $50,000 in debt, your net worth would be a positive $50,000. As you progress in your financial plan and save more, your assets should increase (along with more savings), and your liabilities will decrease (as you eliminate debt)
EditCalculating A Monthly Budget - Decide to create a budget. While net worth gives you a picture of your assets and liabilities, it is even more important to know how much money comes in and goes out every month. This will give you a good idea of what you spend money on every month, and having all these expenses written down can tell you exactly where savings can be found. This is the centerpiece of any financial plan[8][9]
- Determine your sources of income. Make a list of your monthly sources of income (salary, child support, etc.). Add these sources together to find your total monthly income.
- Determine your monthly expenses. It can be helpful to organize these into groups. For example, under "Housing," you could include your rent or mortgage payments, home or renter's insurance, and utilities; under "Transportation," you could include car payments, fuel costs, maintenance charges, and car insurance. Add all of your expenses together to find your monthly total. Make sure to include expenses like entertainment, food, clothing, credit card payments, taxes, and other incidental costs.
- Account for irregular and variable expenses. Remember that some expenses are "fixed" (the same or nearly the same each month) while others are variable (change frequently, or are irregular). When making a budget, try to account for variable expenses, including those that don't occur monthly.
- You can make a list of variable expenses that occur over a period of several months, add them together, and then divide that sum by the number of months. This will leave you with an average variable expense number that you can factor into your monthly budget.
- Subtract your total expenses from your total income. If your income is more than your expenses, you will have a remainder that you can save, invest, or spend according to your financial goals. If your expenses are more than your income, then review your budget for expenses that you can reduce or cut.
- If you don't yet know the exact amount of your income and/or expenses, keep track of them for a few months to get an idea.
- Review and update your budget frequently. Make sure to add any new expenses, and remove any that you no longer have.
EditSaving Your Money - Find savings. Regardless of your financial goal, saving will be a central component. Whether your objective is to purchase a house, retire early, or pay for a child's education, saving will be the key means by which you accomplish the goal.
- Refer to your budget for this. Look at your monthly expenses, and find areas of non-essential spending that can be cut. For example, if you eat out three times a month, or buy lunch at work everyday, focus on eating out once a month, or bringing a lunch to work.
- Look at your budget and decide what is a "want" and what is a "need". Look to the "wants" area for savings. Similarly, look at what you consider "needs", and ask yourself if they are truly needs. For example, your cell-phone may be a need, but you may not need a 3GB data plan, and instead can get by on 1GB.
- Learn to make saving a habit. Begin by opening insured account at a reputable bank. Experts recommend the method of "paying yourself first," which means that each pay period, you commit to setting a certain amount aside for savings as part of your budget.You can make an arrangement with many banks to automatically withdraw a set amount of money from your paycheck for this purpose.[10]
- Save an amount that you are comfortable with, given your needs and expenses. The amount you save can increase (or decrease) as time goes on. The important thing is to save something, even if it is just a small amount.
- Saving ten percent of your income is a good place to begin, but saving anything is better than nothing.[11]
- Saving even a small amount in an interest-earning account (checking, savings, CD, etc.) will be beneficial because of the power of compounding. This means that the interest your money (principle) earns becomes added to the principle in time, which then earns more interest, and so on—causing the overall value of the account to grow.[12]
- Practice makes perfect. By saving a set amount each month, or "paying yourself first", it will become automatic and you will learn to live without the saved money as if it wasn't there to begin with. View the saved money as an essential expense, just like rent or mortgage payments.
- Build an emergency fund. Experts recommend setting aside enough money to cover your needs for at least three months as an emergency fund in case of job loss, major illness, etc. Keep these funds in an insured bank account so they will be both protected and easily available when you need them.[13]
- You can also protect yourself against financial problems by being properly insured. If you have questions about homeowner's/renters, health, life, unemployment, disability, or car insurance, talk to your relevant agent.[14]
- Take advantage of any special savings benefits. If there are government- or employer-based savings incentives available (such as for education or retirement), consider taking advantage of them. If your government or employer is able to contribute to these savings plans or offer other kinds of benefits (such as tax relief), it may help you get closer to your financial goals.
- In the United States, for example, you may have access to a 401(k) retirement account through your employer, who may also match a certain amount of your contributions and increase the value of the account. Similarly, anyone can open an Individual Retirement Account (IRA), which can have tax benefits.[15]
EditInvesting Your Money - Consider making investments. Investing is an essential part of most financial plans, as it allows you to to reach your financial goals quicker, and with less money saved by generating a return. It is important to note though that all investments do carry a degree of risk, and it is possible to lose money. [16]
- Common areas of investments include stocks, mutual funds, bonds, real estate, and commodities.[17]
- Each type of investment has a different earning potential, costs, and risks.
- You can purchase many types of investments (such bonds, stocks, and mutual funds) through banks, brokerages, and sometimes directly from companies, governments, or municipalities.
- Much investing can now be completed entirely online, but there are many investment brokers you can consult in person. Fees for face-to-face consultation, however, will likely be higher than transactions you complete on your own online.
- Understand the different types of investments. Although there are too many to list in one location, three important types of investments are stocks, bonds, mutual funds.
 - A stock refers to ownership in a company. By purchasing a stock, you are effectively buying a piece of a business, and the value of that piece will move up or down depending on how many people want to buy or sell it. For this reason, stocks can be incredibly volatile, and although they generally do better then any other type of investment (returning an average of 8% annually since 1929), they can also lose a tremendous amount in one year. For example, in 2008, U.S. stocks fell 50%. Stocks are a good choice for individuals holding for a long-term, such as those planning for retirement.
- Bonds refer to a debt investment. When you loan money to a government or company, you are purchasing a bond. In return for loaning the money, you will receive interest from the entity you loaned to, usually paid out annually or semi-annually. Bonds offer less risk than stocks traditionally.
- A mutual fund refers to a collection of investments (usually stocks), managed by a professional investor. When you purchase a fund, you are buying ownership in the basket of stocks, and you make or lose money depending on how the underlying basket does. Mutual Funds are a great choice for hands-off investors, as you benefit from plenty of diversification, and a professional manager who will buy, sell, and manage the portfolio depending on market conditions and their strategy. There are, however, fees associated.
- Determine how much risk you can take. Every type of investment carries a different level of risk, and before investing it is important to know the degree of risk you are willing to expose your hard-earned money to.
 - Refer to your goals to determine your risk. For example, if you are saving for a vacation in 6 month, investing in stocks may be a poor decision, because stocks carry higher risk and can be very volatile over time. This means that while there is a chance you could reach your savings goal very quickly with less money saved, there is also a chance that you will need to postpone your vacation due to your investments dropping far below what you put in. A better bet would be bonds (which carry lower risk), or even just cash in a high interest savings account.
- A general rule of thumb is that the higher the potential return, the greater the risk—which also means that the lower the risk, the lower the potential return.[18]
- Fairly "safe" investments include savings accounts, and U.S. Treasury bonds.[19] Stocks have the potential for greater returns but also higher risks. Mutual funds help minimize risk by investing across a broad range of stocks and securities, and can be a good choice for long-term investments.
- Never invest money you need in the short-term, or for essential items like food, rent, or gas.
- Choose appropriate investments. Once you know your goals, understand the types of investments, and know your risk tolerance, you can select a type.
 - Stocks work well if you have a medium to high level of risk tolerance, and are saving for medium to long-term goals. For example, if you are saving for retirement, having stocks is highly recommended. Keep in mind that not all stocks are high-risk. For example, investing in a small pharmaceutical company (which is not recommended) would be extremely high risk, whereas investing in a large, stable company with steady cash flow and competitive market share like Wal-Mart, Wells Fargo, or Coca-Cola would be much lower risk.
- If you do not have the time, comfort-level, or risk tolerance for individual stocks, consider mutual funds. These are suitable for longer or medium term goals like retirement or saving for a child's education, but are more "hands off", and you can often just check on them annually or semi-annually to make sure they are performing as you want them to. You can research mutual funds on your own and purchase them through an online dealer, or visit your local bank or financial advisor for options.[20]
- Bonds are suitable for individuals with lower risk tolerance, who are more concerned with preserving savings, while growing them at a low but steady rate. It is important to note that bonds have a place in any portfolio, and it is often advised that individuals who are in their 20's to 40's have a larger stock and mutual fund allocation, whereas individuals closer to retirement switch more to bonds to preserve savings. Bonds can be an effective way to balance your portfolio and lower your risk. A good rule is to subtract your age from 100, and that is the percentage you should hold in stocks.[21]
- Diversify your investments. Not all sectors of the economy perform equally well (or badly) at the same time. If you spread your financial portfolio across different kinds of investments, then you can minimize your risk of losing its overall value in the event that one or more parts of it "take a hit." This method is called diversification.[22]
- For example, a retirement plan might be spread across several types of investments, including mutual funds, stocks, and savings accounts. In this case, the mutual fund's likelihood of long-term growth could make up the difference if an individual stock the retirement plan invests in loses value. The cash in a savings account, while it would earn relatively low interest, would be insured and easily accessible if needed.
EditFocusing On Making Good Financial Decisions - Think carefully when making financial decisions. The SAVED (Stop, Ask, Verify, Estimate, Decide) method is a guideline to follow when making financial decisions:[23]
- Stop and give yourself time to think before making any financial decision. Don't be pressured by salespeople, brokers, etc. Tell them (and yourself) that you want time to consider.
- Ask about costs (taxes, fees, maintenance, etc.) and risks that would be part of the decision. Make sure you know what the worst-case scenario might be.
- Verify all information to make sure it is accurate and trustworthy.
- Estimate the costs of this decision, and how it would fit into your overall budget.
- Decide if the decision makes sense for you.
- Be cautious when using credit. Sometimes, borrowing money can be a sound choice—for instance, buying a home, paying for education, or making a necessary purchase. However, keeping debt—especially high-interest debt like credit cards—reduces your net worth and can slow your progress toward achieving some financial goals.[24]
- Don't overuse credit cards. Try to make your spending within your means.
- Pay off high-interest debt as soon as possible. This can be the best strategy for financial growth in the long run, because even good investments usually can't earn enough to make up for high-interest debt.
- If you have multiple credit accounts, try to pay off the one with the highest interest rate first.
- Seek trusted advice when you need it. Financial planning can often be successfully self-directed. However, if you feel like you don't have the time to do research and manage your finances, don't know where to start planning, or if you are dealing with something unexpected (like an inheritance or illness), you should consider consulting with a certified financial planner.[25]
- Be wary of untrusted sources of advice, investments, etc. If an offer sounds too good to be true, there is a good chance that it is.[26]
- Laws, regulations, and best practices related to financial planning can vary widely depending on where you live and/or work. Make sure you understand these thoroughly before making financial decisions, and seek expert advice if there is anything you do not understand.
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