Getting Started With Savings
I recommend maintaining three distinct types of savings accounts: an emergency fund (with 3-6 months’ worth of essential living expenses), a big-ticket item replacement fund (where you save for your next vehicle or to pay for a new furnace), and a periodic bills and expenses fund (where you save each month for bills and expenses that you’ll have to pay sometime in the year, such as an annual life insurance premium or Christmas gifts). You could open 3 separate accounts. Or, I use Capital One 360, where one account can be set up with numerous sub-accounts.
Over the years, I’ve asked readers to share some of the best financial advice they’ve ever received. Here are some of their answers. Bob said that during a pre-marriage class he and his then fiancé attended, the teacher suggested using pay raises to build an initial savings account. In Bob’s words, “I can remember how […]
Weekly roundup of interesting and helpful personal finance articles from around the web. Why having “enough” feels so elusive (Rad Reads). No easy answers here, just a good question we would all do well to ask ourselves from time to time. How a post-college gap year set me up for a million-dollar retirement (Real Simple). […]
We make lots of financial decisions every day. However, over the course of our lives, there are about 10-15 decisions that really matter. How well we navigate them will make an especially big difference in whether we struggle with money or live with financial freedom and joy. As I describe the decisions, please keep a […]
Weekly roundup of some of the best personal finance articles from around the web. 51% of millennials are keeping a major money secret from their partner: here’s what they’re hiding (CNBC). The ideal? Full financial disclosure before marriage, ongoing financial transparency after marriage. Should I pay off debt, save money, or invest? (Clark Howard). The […]
Weekly roundup of some of the best personal finance articles from around the web. 22 IRS audit red flags (Kiplinger). It’s always struck me as odd that people who give especially generously are more likely to be audited. Rationality in investing (Retirement Field Guide). Taking a long-term perspective will be better for your portfolio, and […]
Are you trying to make a positive change in your finances or some other area of your life? How clear are you about the change you’re trying to make? As Chip and Dan Heath researched Switch, their helpful book about what it takes to truly change something about our lives, they discovered several surprises. This […]
Weekly roundup of some of the best personal finance articles from around the web. How much is $20 a month worth? (A Wealth of Common Sense). Boosting your savings by a little bit can make a big difference. How to save for a big purchase (Of Dollars and Data). Low risk isn’t the same as […]
It’s easy to make managing money more complicated than it needs to be. That’s because money isn’t just an objective “means of exchange” as the dictionary defines it. Money is wrapped up in our emotions – our hopes, dreams, and fears. And our use of it is strongly influenced by the many messages of our […]
Weekly roundup of some of the best personal finance articles from around the web. Spend your money on these three things to increase happiness, according to science (Becoming Minimalist). Good reminders about some of the best uses of money. 5 ways to land a promotion (besides showing you’re a hard worker) (Fast Company). How to […]
Weekly roundup of some of the best personal finance articles from around the web. Coronavirus makes emergency funds look like a great idea (Financial Planning). The pandemic is providing a good opportunity to shore up our financial habits and practices. Do you need to create or add to an emergency fund? Fractional shares expose Wall […]
