10% Savings

Many people pay 10% of their gross income to their church as a tithe. Why not give yourself 10% too?

Don't expect the government to take care of your retirement. The only way to ensure your financial future is to take personal responsibility for it. Saving and investing at any age is a good idea but the younger you are when you begin, the more your earnings can add up. Building up your savings can be a difficult thing but follow these tips and you might discover that it is easier than you think.

Step#1: Discuss with your partner what your savings will be for (retirement, home, college) and when it is okay and not okay to dip into it.

Step#2: Discuss how much you will always put into your savings. 10% is a good number to start with but more is always better if you can afford it.

Step#3: Decide what type of account you will keep it in. Money Market accounts and CD's from your bank are safe places to keep your money while gaining a little interest. IRA's, HMO's and other investment accounts have higher earning rates but can fluctuate over time. Discussing options with a financial planner, your employer or your bank will help you decide the best option for you.

Step#4: JUST DO IT! When that check comes in at the end of the month put your designated percent in your savings account right away. If you don't do it immediately you'll spend it. Trust me. Some employers and banks even have options through direct deposit to place percentages into your different accounts. Other employers will match what you put into a retirement account.

Step#5: Stick to the plan. Be consistent and don't borrow for unnecessary things. Better yet, don't borrow from it at all. If there is an emergency and you have to borrow, pay yourself back as soon as possible.

Step# 6: Teach your children how to save. You can never be too early to start.

Step #7: Enjoy your financial freedom and peace of mind. You deserve it!