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.
A weekly roundup of some of the more interesting and helpful personal finance articles I’ve read recently. One simple financial move you can make in a month (Forbes). A little bit of this can make a big difference. When not to save for retirement (Reuters). I agree – there are two steps you should take […]
Of all the things you can do with money, few are more boring than putting it into a savings account, right? Spending it? Now, that’s fun. Investing can be enjoyable, too. But parking some money in an “interest-bearing” savings account where $1,000 may turn into $1,001 in a year’s time? Who needs it? You do, […]
Say what you will about the Occupy Wall Street protesters, but at least they’ve gotten people thinking and talking about our economic mess. While I can’t say I agree with their demands (at least, as I understand them), and I could do without all the name-calling that’s swirled around the discussion, I like the passion […]
In this era of microscopic savings rates, one way to squeeze a little more interest out of your savings is what’s known as CD laddering. What is a CD? A CD is a certificate of deposit. It’s a low risk savings vehicle offered by banks, credit unions, and brokerage houses. You agree to keep the […]
“Of what use is money in the hand of a fool, since he has no desire to get wisdom?” – Proverbs 17:16 No one wants to be thought of as a fool – not on April Fool’s Day, not at any time. The Bible uses that strong term only a handful of times in regard […]
Interested in dialing down your financial stress and making your finances run more smoothly? Open and maintain two savings accounts. Savings Account Number One: An Emergency Fund During the early days of the recession, I worked with the market research firm Synovate to conduct a national survey (See “Tough Times Call for…”) asking people how […]
The New York Times recently ran a series of six essays offering various explanations for the generally poor job we Americans do with savings. One blamed the disappearance of defined benefits plans, which, without any conscious effort on the part of workers, provided a steady income in retirement. That same writer dismissed the efforts of […]
I’m excited about the start of a New Year, the opportunity to pursue some important new goals, and the opportunity to share ideas with you on how to live with the freedom and joy that come from getting the money thing right. As we reset the calendar, this seems like an appropriate time to explain […]
The personal finance blog Watson Inc asked a great question recently: what do you wish you had done differently financially? The author named four of his own financial regrets: financing a car, taking out too much in student loans, not getting started with investing earlier, and not delaying grad school until he could better afford […]
College seniors who graduated last year owed an average of $24,000 in student loans. That figure, as reported by CNNMoney.com, comes from The Project on Student Debt, which analyzed student loan debt at more than 1,000 public and private four-year schools. Using some common assumptions, paying off $24,000 in student loan debt over 10 years […]
