Lastly, remember you are in the driver’s seat. You choose how much to save and you choose where to place your money for safekeeping. Because you work hard for your money, and part of the fun is making your money work for you, giving you those lasting rewards. Now that you have some answers, you are on the path to planning how you will save your money.
So let’s take another look at those questions you read at the beginning of the course to review the answers.
How do I decide how much money should I save? Try the 50/30/20 budget rule.
What is the best method to save my money? To reach your financial goals and successfully prepare you for future financial emergencies, a good practice is to use a savings account. More advanced methods are investments, bonds, and retirement accounts.
Are all savings accounts the same? We learned this is absolutely a big NO, right? There are so many options to choose from. Research, research, research, is the best thing anyone can do when they are trying to make such an important decision as to where you want to save your hard-earned money. Also consider having more than one savings account, especially if you are trying to allocate money toward several different goals.
Is a bank better than a credit union or vice versa? This personal decision is based on your goals, expectations, and needs. If you need help deciding, a good old fashion pro and cons list can help guide you in making the best decision for YOU!
Which bank and what type of savings account should I choose? Look at the big picture. What are your goals and expectations? Those answers will help you choose the best financial institution and which type of account that fits your needs.
Everyone should have at least one savings account. Remember the suggested 20% savings plan when you are trying to reach your savings goal. Even if you can’t save 20%, don’t wait until you can put 20% of your income towards savings, START TODAY!
For more money fun, check out these other resources: https://www.frbservices.org/education/webinars.html https://www.investopedia.com/