Saving Secrets
Whether you’re saving for something special, something shiny and new or your future, here are a few are some tips to get you started.
Do you work better with a goal? I do, I’m one of those people that likes to know where I’m going and typically I know what I want. I don’t always know how I’m going to get there but with a little research and a map I can figure it out. Once I’ve got my plan, I can relax and more than half the battle is won. For me, it’s making the plan that’s the hurdle, for others it may be putting the plan into action. So where to start?
- Goal: What are you saving for?
- Timeline: When do you want it?
- Savings Vehicle: How will you get it?
Goal – This is important because if it’s something that you really, really want, you will be motivated.
Timeline – The length of time you have to save for your goal drives two components of your plan a) How much you have to save each month or year and b) The amount of risk you may be willing to take with your savings. If you have years and years, you may be willing to trade a little security for longer term gains with greater risk and fluctuation on the way.
Savings Vehicle – Keeping it simple works best. If you are a disciplined saver, you’re off to the races but most of us need a little help. Do you have to cut expenses to put away the extra cash or earn some more money? It’s easy to set up an automatic transfer from your regular bank account to a ‘savings plan’ account. The money builds up before you know it. The goal or purpose of the savings along with the timeline and risk tolerance dictates the type of investment product that’s right for you.
If you are clear on these points, you will find a way to reach your goal and saving for it will be easier than you expect.
Posted: October 3rd, 2012 under CEO of the House, Money & Lifestyle, Money Savvy Tips, Tips & Tricks.
Tags: Budget, Dear Piggy Bank, Financial Planning, Money Systems, Retirement