Catch a Gideon

Saving - Personal Finance Tips

January 24th, 2007 by digerati

1. Save now. It doesn’t matter if you’re six or 60. You should be saving a little bit every month, aside from retirement savings. The sooner you start, the better.
2. Pay off high interest debts before you start saving. Earning 5% in your savings account isn’t going to do much good if you’re accruing 17% interest on your credit card debt.
3. Save at least 10% of your annual salary for retirement. This should help to provide a nice retirement fund when you need it.
4. Keep at least three months’ worth of living expenses in a savings account or high-yield money market account.
5. Open an online savings account. Online savings accounts, such as Emigrant Direct or HSBC Direct, offer yields of greater than 5%.
6. Set up an automatic savings plan. You should be able to set up your checking account so that a certain amount is automatically transferred to a savings account each month. It’s a good way to force yourself to save.

Source: Your Credit Advisor

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