Retiro, a wedding, a trip to Tahiti - who want it all. Who does not?
You have some money in your budget, how to spend the "savings". This is an important first step.
But there is a long list of savings goals. Approaches its tenth anniversary. Their children to college soon. You want to retire. You should replace your car.
How to juggle all these savings goals? Here are some tips.
In fact, the interactive personal schedule can be found in this budget calculation sheet.
# 1: Your emergency fund is in the first
Whatever the size of other goals, building an emergency fund should always come first.
Make an emergency money for the worst scénarios- money aside. If you are from, subject, if the motor breaks explode in your car or home furnace, the emergency fund to save the day. This is your safety net.
Many people make the mistake of thinking that your credit card be used in an emergency. Credit cards should never be used as a safety net. Credit card debt creates problems, not solve problems.
Experts do not agree, you should put aside for emergencies on the amount of money, but the general consensus is that you need to save 3-6 months of living expenses. (Some experts believe that you should save 9-12 months costs, especially if you're self-employed or if your job is in danger.)
# 2: Your retirement is the head
The pension is almost equal to an emergency savings fund to be addressed with the highest priority.
Many parents make the mistake of giving priority to the rescue of college fund for their children, instead of money for their own retirement. While it is of course to be Studies want to pay for their children, it is a big mistake.
His children are young; have a lifetime ahead of them to repay their loans and save for their own old age. You - as parents - not have that luxury. They have a range time horizon, prepare for retirement.
Remember, the students take loans to students. Never take a "ready for retirement."
# 3: Pay off your credit cards
Pay your credit cards is essential to good financial health. Repayment of the credit card must be above all other objectives, with the exception of emergency funds and retirement plans.
If you have a high interest credit card debt, you must have a minimum of $ 1,000 on hand in an emergency fund, and save at least one reference amount for retirement. Apply to pay the remainder of your savings off your credit card debt. For more information about creating your first budget, to help keep track of all of these goals.
Some experts do not agree with the proposal of $ 1,000. They argue that people with high interest credit card debt should save 3-6 months of living expenses before they pay their debts.
If you have a credit card debt, you need one of the options will help you sleep better to choose at night. Save a minimum of $ 1,000 in an emergency or a maximum of six months of fund costs.
# 4: consider what might trigger future debt
Once you have an emergency fund for retirement savings created and pay their existing debts, the next priority should be to anything that might cause you to store into debt in the future.
Look 5-10 years in the future to events once every 10 years, you can run into debt if you are not willing to anticipate. (Remember, your emergency fund should only be the last resort, snacks.)
Learn to read more about saving time fee or by the following examples.
The car example: you know that it is very likely to change the car. Start saving to buy your next car in cash for you - instead of a car loan - by monthly "car payments" to you.
Say you are in the habit of a monthly payment of $ 200 on your auto loan. Once you have paid off your car, keep doing a monthly payment of $ 200 - unless you now have to pay yourself. Set up the money in a special savings account that you spend when buying your next vehicle.
Home Example: If you are an owner, you may have your roof to replace your carpets and large appliances such as refrigerator, washing machine and dryer. Instead of financing these purchases, create a fund to save these costs once a decade.
The school example: If you want to go back to school or send a finishing school or their children to college, start now to save, so you do not have to take loans to students. (Remember - your retirement comes first!)
The example of the marriage: If you are willing to borrow to pay for your wedding, start saving now - even if you have not yet met that special someone. Try this interactive worksheet that you want to save for things "fun."
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