Saving money is an important step to take to plan for your future and to be financially secure in life.
But did you know, the way you save in your 20’s and our 60’s could look completely different? The one thing that will remain the same throughout the years is the importance of saving! So no matter where you are in life, it’s never too soon to start your savings journey. Here is the first of two blogs on saving for any age, with some tips to help you start saving.
In Your 20’s
- Open a savings account, if you don't already have one. If you already have a personal savings account, consider a Money Market Savings Account or a Certificate of Deposit (CD) which will earn you more interest.
- Establish, and stick to, a budget. Ideally, 50% of your income will go towards non-negotiable items like rent and groceries, 30% towards savings, and 20% towards fun expenses like eating out. Read more about sticking to your budget.
- Open a 401(k), especially if one with fund-matching is offered at your job. If you start an Individual Retirement Account (IRA) now, even if you don’t touch it, that money will grow and put you on the right track later in life.
- Start an emergency fund. Create an emergency savings account. Start by saving at least three months' worth of expenses for a good-sized emergency fund you can rely on in case of a medical mishap or unemployment.
In Your 30’s
- Open an investment account and work with a financial advisor, like the ones at Palisades CU. Investment funds are one of the effective ways to build wealth and opening one now will prepare you for your future, no matter what your goal.
- Increase your 401(k) contribution or open another retirement account, such as a Roth IRA.
- Plan for your other savings goals, whether you're saving for your first home, college for your kids, vacations, or something else. Retirement should always be on the table when saving but you’ll want to plan for those other big expenses as well.
No matter where you are on your savings journey, seeking the advice and counsel of a financial advisor can help you get, or stay, on the right track. Even if you just have a question about any of these tips we can help. Come see one of Palisades CU’s great financial advisors! Stay tuned for our next blog which will focus on saving in your 40’s, 50’s and 60’s!
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View Current Savings Rates in Rockland and Bergen County:
- Savings Account Rates
- Money Market Account Rates
- Certificate of Deposit (CD) Rates
- Individual Retirement Account (IRA) Rates
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