Saving for the Future
Getting your finances organized in the now is great, but it’s even better if you have a plan to build a better financial future. Building your savings allows you to create a safety net for your finances so you can better navigate unforeseen expenses and unexpected life events. It can also help you get to a better place in your life and ensure you’ll be financially secure for the years to come.
At Consolidated Credit Solutions we help people find debt relief and improve their budget, but we also help make a plan for the future so you can be more financially secure. Call us at 1-800-990-9838 to speak with a financial professional who can offer tips and advice on creating a savings strategy that works for you.
How much should you save?
The first question everyone has when it comes to saving money is exactly how much money should you be saving. Every financial situation is different, but in general financial experts agree you should have at least $1,000 of emergency money set aside in a savings account. This provides good financial padding if you have to take an unexpected trip to the ER or have an unforeseen big expense if something in the house breaks. This isn’t the only savings you need, but this is the first savings you need to establish if you’re just getting started.
Following your emergency savings fund, you want to start building savings that will maximize the benefit offered by your finances. This includes building retirement accounts, making sure you have enough to send kids to college, and even investing in long-term savings options that grow your money over time. Everyone’s situation is different, so it’s important to research your savings options carefully, talk to professionals, and choose the right saving strategy for you. Where can you get a 5% savings account today?
When it comes to how much money you need to contribute to your chosen strategy for saving, it’s a matter of what your budget can tolerate. A general rule of thumb is you contribute 10%-15% of your net (take-home) income each month. However, if you don’t have that much available, this isn’t a reason to just give up and save nothing. Even just contributing $1,000 per year ($19.20 per week), you can build $12,578 in savings in 10 years with a basic 5% interest savings account.
How much you contribute to savings also depends on when you start. If you start saving early, you give your money more time to build up with interest. This is why it’s so essential to put money into a savings account or long-term investment option and not touch it for as long as possible. If you get started late, this doesn’t mean you can’t build a good savings plan, it’s just going to take a little more money to get where you need to go.
Building retirement savings is vital to ensuring you are financially prepared to have a happy, comfortable retirement. Learn strategies that can help maximize your retirement savings, so you and your finances can be ready for retirement when the day finally comes. Even if you’re starting late, we have strategies to help get you where you need to be.
If you’re living on a tight budget, you may feel stuck when it comes to finding any money to put towards building savings. Learn ways to find more money in your monthly budget so you can create the savings plan you need. Plus get tips on how to cut back without feeling like you’re going without.
Without a doubt, college is expensive. While student loans give you a way to achieve your career dreams, they also give you a fast way to build up lots of debt at any early age. Having a good savings plan in place for kids’ college tuition can help ease the financial burden of higher education. We’ll also show you ways to make college more affordable.