Welcome Back! If you are just getting started, I suggest you go back and review the previous posts in the series here.
Start a Savings Plan
Even though we are getting close to the end of this series, I don’t want you to think that makes this any less important.
YOU NEED TO START SAVING TODAY!
This is so important, because none of us are getting any younger, and one day you are not going to be able to work for your money, and will have to rely on what you have saved over the years.
You really don’t think social security is going to be around then do you?
First off, you need an emergency fund. The amount of this varies depending on who you talk to, but initially, before you save for anything else, you need to have $1000 saved as an emergency fund.
The reason for this is in case you have a car break down or other such emergency, you won’t have to charge it.
After you have your emergency fund started, max out any retirement you can starting with a matching 401k. Any matching funds are free money, so take full advantage of them.
Once you have maxed out your retirement, then you can build on your emergency fund until you have at least six months of expenses saved.
After that, then start saving for other things. Be sure to check with your financial adviser on the best place to put your money in order to maximize the value!
Start saving right away, even if it is a very small amount. Once you get in the habit, it will become a lot easier to just put the money away and forget about it.
Action Steps
Open an account and start saving! Pretty simple, huh?
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