Your Key to Success
have wants. You have needs. And you have two ways of paying for
them - pull out the credit card or use the money you have set
aside. Which would you prefer?
a safe bet that most people would choose to have a stash of cash
from which they could pay for everything from impulse purchases
to long-term financial goals. But how do you save when there are
bills to pay and a paycheck only goes so far?
it now. Even without a specific goal, saving immediately
will make you feel good. Have debt? Put a little aside anyway.
Acquiring a savings habit as soon as possible is critical. By
setting a little aside each month while aggressively paying down
your obligations, you will graduate into being debt free with
a happy little nest egg in place. And in the event of an emergency
you won't have to touch the credit cards and feel like you're driving
a goal. All achievable goals share the same four factors:
want it - or you won't be motivated
the price - so you know how much to save
a time frame - and break it down into reasonable and consistent
flexible - contribute less if you have to, but don't give up
it somewhere. How much you have, your time frame, and
personal risk tolerance will determine the best home for your
money. A few accounts you may consider are:
account - A great starter account. Interest and risk are low
and minimum deposit is small.
Market Account - This savings account pays slightly better interest
but may require a higher minimum balance.
Market Fund - A very secure mutual fund account. Invested in
high-quality, short-term investments. Higher deposit, interest
of Deposit - Three months to six years investment commitment,
CDs offer higher and fixed interest rates, but with a greater
initial deposit and penalty for early withdrawal.
mid to long-term goals, you may opt for investment rather then
savings vehicles. After you've saved enough in one of the above
accounts, you can transfer your money to mutual funds, bonds,
or individual stocks if you wish.
Not at all. With careful planning, savings is the key to successfully
managing your money and getting everything you want.