Topic: How to Start Saving
Q: Everyone knows they need to save money, but what’s a good way to start?
A: The best advice we give our members to help them start saving is to start small. You can open a separate savings account and have a small portion of each paycheck direct deposited into it. This will help you build an emergency savings fund.
Q: How much money should someone have in their emergency fund?
A: The rule of thumb is to have between 3 to 6 months’ worth of your income saved. However, if your just getting started set your goal a little smaller than that, at around $300 for example that’s only saving $25 a month for 12 months, then increase your goal as you get better at saving.
Q: What are some easy ways someone could save $25 a month?
A: The easiest answer is cut back on how often you go out to eat. Then use the money you would have spent going out to eat and put that money into a savings account. You will be amazed at the end of the month how quickly those purchases add up.
- My Money Monday, Jan. 29 - How to start saving
- My Money Monday - Saving money from paychecks
- My Money Monday, Jan. 22 - Paying off holiday debt
- My Money Monday, April 23 - Starting an allowance for children
- Iowa tax cuts could save families money
- My Money Monday, April 16 - Teaching kids good money habits
- My Money Monday - Is college worth the money?
- My Money Monday - Budgeting tips for newlyweds
- My Money Monday - Tips for overspending
- My Money Monday - Tackling student debt