Wallet Wizard
Saving is more than not spending; There's a plan.
| Saving |
Joseph Onesta
| Certified Financial Counselor Personal Finance Coach Former Director of Education for Consumer Credit Counseling Service of Los Angeles |
| Contact me: (412) 777-9821 |
Saving can be tough if it isn't already part of your life. If you
aren't a saver, you need to become one.
Start Small: A lot of people are barely making ends meet
and in their minds, saving is incomprehensible. Even a
piggybank is a healthy start. I'm not talking about a jar of
coins that you dip into when you want to go to the laundrymat
or the self-serve car wash. A piggy bank is a "deposit only"
device. Once the pennies, nickels, dimes and quarters go in,
they don't come out until you roll them and take them to the
bank. Consider taking all our loose change at the end of
everly day and drop it into a can, jar or bucket. Deposit the
proceeds into a savings account. I have an on-line savings
account. On line accounts seem to offer better interest rates.
Increase your savings: As you get better at budgeting,
you'll find you have more and more cash to set aside. Ideally,
you should be setting aside 10% to 20% of your net income.
The more you are able to save the better off you'll be later.
Don't consider savings, disposible income. New savers
often get excited when they see the balances grow and then
they want to go shopping. Rember that once you spend it, it's
gone.
Build an Emergency Cusion: One of the biggest reasons
people live paycheck to paycheck is that they don't have a
financial cushion. (Traditionally three to six months living
expenses.) This is the kind of money that you keep readily
available if you really need it but not necessarily in your
checking account. When you maintain this amount of
available funds, you are better prepared for financial
emergencies and you can pay your bills on time.
Invest the Rest: Once your emergency cushion is in place,
(It may take several years to build.), you can think about
investing.
aren't a saver, you need to become one.
Start Small: A lot of people are barely making ends meet
and in their minds, saving is incomprehensible. Even a
piggybank is a healthy start. I'm not talking about a jar of
coins that you dip into when you want to go to the laundrymat
or the self-serve car wash. A piggy bank is a "deposit only"
device. Once the pennies, nickels, dimes and quarters go in,
they don't come out until you roll them and take them to the
bank. Consider taking all our loose change at the end of
everly day and drop it into a can, jar or bucket. Deposit the
proceeds into a savings account. I have an on-line savings
account. On line accounts seem to offer better interest rates.
Increase your savings: As you get better at budgeting,
you'll find you have more and more cash to set aside. Ideally,
you should be setting aside 10% to 20% of your net income.
The more you are able to save the better off you'll be later.
Don't consider savings, disposible income. New savers
often get excited when they see the balances grow and then
they want to go shopping. Rember that once you spend it, it's
gone.
Build an Emergency Cusion: One of the biggest reasons
people live paycheck to paycheck is that they don't have a
financial cushion. (Traditionally three to six months living
expenses.) This is the kind of money that you keep readily
available if you really need it but not necessarily in your
checking account. When you maintain this amount of
available funds, you are better prepared for financial
emergencies and you can pay your bills on time.
Invest the Rest: Once your emergency cushion is in place,
(It may take several years to build.), you can think about
investing.
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