As the country gradually works its way through recovery, consumers may want to consider how savings should play a role in their lives, particularly when it comes to planning for the future. “No one is so powerful that they can stop the march of time,” the saying goes which means planning for your future begins right now.
Let’s take a look at some areas of your life where savings should take a priority in 2011:
1. Emergency Fund — Do you have emergency funds on hand or do you rely upon plastic to see you through rough patches? Credit cards are costly and a reactive way to handle life’s many challenges including an unexpected repair bill, a trip to the emergency room, a death in the family, and more. Begin to squirrel away a few dollars each pay period to get this fund replenished…or started!
2. College Funds — Those cute little kindergarten kids will soon be high school seniors preparing for college. Time does fly and it flies by fast — are you saving money for higher education or will your offspring be forced to take out student loans, rely upon iffy scholarships and grants or hope that someone leaves them a cash stash? Explore 529 college savings plans today.
3. Your Retirement — You say you want to work for the rest of your life? If that is your choice, fine. If not, that’s a shame. You may not have enough cash at the moment, but putting aside money each week in a growth account can give you something to live on besides Social Security. And, we know how insecure the government paycheck can be!
4. Vacation Fund — Martha’s Vineyard, Baja California and a tour of the Far East are an expensive dream for some people. Put it on your calendar for 2014 and start saving for your ideal future trip today. Want to take a pricey safari junket? Add a few more years out and put more money aside each week to help you save right now.
5. Christmas Cash — Banks used to offer Christmas accounts and I reckon that some still do. In any case, you can set aside money each week or take a chunk of cash from your tax return and set it aside for Christmas 2011. It sure beats going into debt and worrying in January 2012 how you will pay your seasonal bills.
6. New Car — Your current ride is getting along in age, but you plan to keep it at least three more years. Well, why not set aside the equivalent of a monthly car payment each month until you’re ready to make a purchase? Saving $300 per month for 3.5 years will give you $12,600 which is about half the price of the average new midsize sedan. That makes for a hefty down payment and one way for you to avoid a car loan longer than 3 years.
7. Fun Fund — Everyone needs a little bit of “mad money” to spend on things they normally wouldn’t buy for themselves at various times of the year. With money put in a dedicated account for that purpose, you can tap it guilt-free without thinking you’ve done something wrong.
Of course, if you have a boatload of debt, tackling that burden in 2011 should be a priority, even over saving money. Still, having some cash on hand to meet future needs is important, something you can plan for by starting a new savings plan for the new year.
Adv. — Visit SayLending.com for additional savings tips.
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