The topic for this month is about Saving. Now that you are using your monthly budget and have paid down your debt, if not paid it off, then saving is your next step and deciding what to do with your savings.
You may ask why I did not start saving before the goals and debt topics and I want to explain why. Say you are paying 15% or more interest monthly on high credit card debt but your monthly savings is only receiving a 4% rate of return are you really coming out ahead? The answer to this will be covered later on this month.
How do you determine how much to save? There are a lot of theories and calculators that you could use but I personally use the 10-10-80 plan. There are many other plans available but this one works for me. Just like I found the one that works for me you will need to find the one that works for you. We will examine my plan and a few more before the end of the month.
While you are waiting on the next insatllment in this series check out ways you are interested in utlizing the money you have or will save. We will be discussing the following....
- Savings Accounts
- 401K and other company deferral options
- IRA - Traditional and Roth
- Stocks, Bonds, and other securities investments
- Real Estate
This month will have a lot of information posted under comments to this post for you to review so check back often!
