How many times have you heard of saving for a rainy day? The real question is how many people are actually saving. According to a recent poll, most people currently employed only have $1,000.00 in their savings accounts for a rainy day. It is recommended to have at least three months of expenses in the savings account. If most people can afford $1,000 and it is recommended to have at least three months of expenses, let’s explore ways of how to turn the $1000.00 into the 3months of expenses.
Savings Accounts
Checking Accounts and Savings Accounts are offered at most banks. If you have a savings account, you should look at your current interest rate. Interest rates can vary from 0.15% to 3.25%. Savings Accounts are great for putting money into every paycheck. However, it is just as easy to take money out again. In order to make your savings account grow it will take discipline to let your savings grow and not take money out for various reasons. Leaving money alone to grow is an issue, let’s look at one of the following options.
Investing in Mutual Funds
The banks with Savings Accounts usually have ways to invest in stocks and bonds, and several other accounts. If you are looking for advice on your own personal finance, you can usually ask to speak to one of the bank’s advisers. Investing money into something like Mutual Funds is a way to put money away and not have it liquid enough where the temptation to use the money that you are putting away is very little. When you are investing in mutual funds you are putting money into securities that will grow as the securities grow in the Stock market. Usually the rates of return are a little higher than the Savings Account. The risk involved with mutual funds can vary with the number of mutual funds available so it is recommended to research the mutual fund in which you will be investing.
Money Allotments
You want to make the deposits seem effortless, you can allot the money either from your paycheck or from your checking account. Using this feature make the bank do most of the work for you. When you allot money from your paycheck you the total in your paycheck will reflect the money already going into the account that you have chosen so it will seem as if you didn’t even notice it while all the while you could be saving $25, $50, even $100 a paycheck. This is one way to pay yourself first with your paycheck and actually be able to budget for your savings.
When saving money it is recommended to pay yourself first. Using these ways to save your money for a rainy day are very simple ways to help you do just that.
Rainy Day Funds – Financial Commentary
How many times have you heard of saving for a rainy day? The real question is how many people are actually saving. According to a recent poll, most people currently employed only have $1,000.00 in their savings accounts for a rainy day. It is recommended to have at least three months of expenses in the savings account. If most people can afford $1,000 and it is recommended to have at least three months of expenses, let’s explore ways of how to turn the $1000.00 into the 3months of expenses.
Savings Accounts
Checking Accounts and Savings Accounts are offered at most banks. If you have a savings account, you should look at your current interest rate. Interest rates can vary from 0.15% to 3.25%. Savings Accounts are great for putting money into every paycheck. However, it is just as easy to take money out again. In order to make your savings account grow it will take discipline to let your savings grow and not take money out for various reasons. Leaving money alone to grow is an issue, let’s look at one of the following options.
Investing in Mutual Funds
The banks with Savings Accounts usually have ways to invest in stocks and bonds, and several other accounts. If you are looking for advice on your own personal finance, you can usually ask to speak to one of the bank’s advisers. Investing money into something like Mutual Funds is a way to put money away and not have it liquid enough where the temptation to use the money that you are putting away is very little. When you are investing in mutual funds you are putting money into securities that will grow as the securities grow in the Stock market. Usually the rates of return are a little higher than the Savings Account. The risk involved with mutual funds can vary with the number of mutual funds available so it is recommended to research the mutual fund in which you will be investing.
Money Allotments
You want to make the deposits seem effortless, you can allot the money either from your paycheck or from your checking account. Using this feature make the bank do most of the work for you. When you allot money from your paycheck you the total in your paycheck will reflect the money already going into the account that you have chosen so it will seem as if you didn’t even notice it while all the while you could be saving $25, $50, even $100 a paycheck. This is one way to pay yourself first with your paycheck and actually be able to budget for your savings.
When saving money it is recommended to pay yourself first. Using these ways to save your money for a rainy day are very simple ways to help you do just that.
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