2-17-06
It's hard for people to save money.
Most people would like to have some money set aside, but have trouble getting a plan together.
In this blog, I would like to share a few ways to start building up that nest egg.
First off, you need to make sure your finances are in order and your debt is under control. If you have a lot of debt, especially credit cards, that needs to be taken care of first.
But let's assume you are in good shape as far as debt goes and are looking to start a saving's plan.
Most experts say you should save at least 10 percent of your gross income. That can go in a retirement plant or 401K, mutual funds or a plain saving's plan.
I know, it's hard to start taking 10 percent of your income and living off the other 90 percent, at least it is for a lot of people.
Before you start, you need to track your expenses and see what can be set aside for a rainy day or retirement. As you track the expenses for a month or so and your budget is set up, you will start seeing some expenses that can be cut out such as eating out, $3 cups of coffee, entertainment or whatever.
Start taking that money and put it in a saving's account instead of blowing it. You probably won't be able to start off with 10 percent, but start easy with 2 or 3 percent and gradually build that total up.
You really need to have three months of living expenses set aside before you start the real savings plan. That is in case you lose your job, medical expenses or whatever that comes along.
After you have that much set aside, that is when you should start putting the money into a saving's account, CD, mutual funds or whatever.
You should base your plan on your risk factor. With your money in savings or CD's, you won't have to worry about ever losing the money.
Historically, you get a better return through mutual funds, but with the way the market is now, there is a chance your money will go down.
Most people would like to have some money set aside, but have trouble getting a plan together.
In this blog, I would like to share a few ways to start building up that nest egg.
First off, you need to make sure your finances are in order and your debt is under control. If you have a lot of debt, especially credit cards, that needs to be taken care of first.
But let's assume you are in good shape as far as debt goes and are looking to start a saving's plan.
Most experts say you should save at least 10 percent of your gross income. That can go in a retirement plant or 401K, mutual funds or a plain saving's plan.
I know, it's hard to start taking 10 percent of your income and living off the other 90 percent, at least it is for a lot of people.
Before you start, you need to track your expenses and see what can be set aside for a rainy day or retirement. As you track the expenses for a month or so and your budget is set up, you will start seeing some expenses that can be cut out such as eating out, $3 cups of coffee, entertainment or whatever.
Start taking that money and put it in a saving's account instead of blowing it. You probably won't be able to start off with 10 percent, but start easy with 2 or 3 percent and gradually build that total up.
You really need to have three months of living expenses set aside before you start the real savings plan. That is in case you lose your job, medical expenses or whatever that comes along.
After you have that much set aside, that is when you should start putting the money into a saving's account, CD, mutual funds or whatever.
You should base your plan on your risk factor. With your money in savings or CD's, you won't have to worry about ever losing the money.
Historically, you get a better return through mutual funds, but with the way the market is now, there is a chance your money will go down.
posted by Craig Hall | 4:57 AM
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