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LEVEL 2 — SAVING FOR FUTURE NEEDS "There is precious treasure and oil in the dwelling of the wise, but a foolish man swallows it up." — Proverbs 21:20 Everyone needs a savings reserve — it's an emergency fund for dealing with the unexpected. By having money set aside and available, you can deal with financial emergencies without having to take on more debt. How big should an emergency fund be? That's up to you, but financial planners typically recommend setting aside funds equal to three-to-six months' living expenses. Linked below are articles and resources that will help you build a savings reserve. For the best current rates on savings instruments, check the "Money Rates" table in each monthly issue of SMI. Read these first 
 Save by Paying Yourself FirstBy Austin Pryor Paying yourself last, out of your leftovers, is the most common reason people fail to meet their savings goals. Try these two paths to automated savings, and watch your saving habits turn around in no time. Selecting The Right Savings Vehicle For Your Time HorizonBy Mark Biller and Joseph Slife To maximize your savings, it's important to match the correct savings tool with your expected time frame. These six tools offer a solution for every savings need. Resources Bankrate.com's "Compare Rates" PageCompare rates on various savings vehicles (updated daily) MoneyAisle.comAn auction site that can help you find higher CD and savings-account rates. Supplemental Articles The Prudent Path: Saving Before InvestingBy Austin Pryor and Joseph Slife Trying to reach an emergency-savings goal of $10,000 can be a tough task. Sometimes it seems like you'll never get there. So you may wonder, "Is all this caution about having a sizeable emergency fund really necessary?" How Much Emergency Savings Do You Really Need?By Mark Biller with Joseph Slife Think you don't need an emergency-reserve fund? Think again. Using Bank Certificates of Deposit to Build a Savings LadderBy Austin Pryor The uncertainty of future interest rate moves makes it difficult to know what the best savings strategies are. One approach that helps eliminate some of the guesswork for savers is building a CD ladder. Welcome Aboard!
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Welcome Aboard! |
