• Saving

    Identify your savings buckets

    There are different purposes and time frames for saving.  Each of these should be kept in mentally different buckets and often in different types of accounts.
    The main “buckets” of savings”

    • Emergency Fund- meant for the “what if’s” like car trouble, medical bills, a broken phone or computer or security deposit issues
    • Education- may be for current or future schooling for yourself or your children, eventually
    • Retirement- long term future savings
    • Extras- vacation, new car, or down payment for a home.

    Automate your savings

    For all types of saving, set automatic transfers or deductions from paychecks so that you don’t “miss” those dollars.

    Retirement savings should NOT wait

    Getting a return on your long-term savings, by means of investing, can help to grow your money effortlessly through the power of compound interest (a compound interest calculator can be found in the links and tools section).
    401(k)s are often matched by employers up to a certain percentage.  If your employer is contributing, it’s like getting free money

    • Only 48% of private sector employees participate in their available retirement plans.

    The key to the power of compound interest is TIME, an asset that young people have on their side.

    • The rule of compound interest implies that the earlier you start, and the more often you save, the less total money you will need to invest to reach your savings goals.