Category: Saving / Spending
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How much money should I keep in a savings account for emergencies?
Answer: Without an adequate emergency fund, a period of crisis could be financially devastating. Many financial professionals suggest that you set aside three to six months’ worth of living expenses for emergencies. The actual amount, however, should be based on your individual circumstances. Do you have a mortgage? Do you have short-term and long-term disability…
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How can I reduce my spending?
Answer: To reduce your spending, you first need to know where your money goes. Start out by keeping track of all of your expenses for a month. None are too small or insignificant: the daily newspaper, coffee on the way to work, an extra gallon of milk, that burger at the fast-food outlet. Next, categorize…
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Establishing or Increasing a Cash Reserve
What is the cash reserve building process? Building a cash reserve is the process of actually setting up and funding the account(s) that will compose it. When available funds fall short of the cash reserve goal, the first step is to review alternatives for reaching that goal. Knowing these alternatives, you can then develop a…
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The Cost of Moving Out of Your Parents’ House
This chart shows the monthly expenses facing young adults ages 25 to 34 in the U.S. who move out of their parents’ home and the percentage each expense consumes based on a typical income for people in this age group. Rent devours paychecks, and transportation and student debt compound costs Moving out can be a…
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401(k) Plans: The Basics
Retirement plans established under Section 401(k) of the Internal Revenue Code, commonly referred to as “401(k) plans,” are one of the most popular types of employer-sponsored retirement plans. What is a 401(k) plan? A 401(k) plan is an employer-sponsored retirement savings plan that offers significant tax benefits while helping you plan for the future. You…
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Getting Started: Establishing a Financial Safety Net
In times of crisis, you don’t want to be shaking pennies out of a piggy bank. Having a financial safety net in place can help ensure that you’re prepared when a financial emergency arises. One way to accomplish this is by setting up a cash reserve, a pool of readily available funds that can help you…
