Personal Savings Strategy
October 09, 2010
With so many important aspects in life one of the most important is to save for the future. The best way to do this and most effective way is to create a saving plan. My savings plan starts with choosing the right account. A money market account that yields a higher return is always a good choice. This type of account however usually requires a minimum opening and continuing balance but has a better long-term interest rate (TDECU, 2005-2010). Using a money market account separate from my checking or savings account allows me to stay within a structured budget by keeping that money for my savings goals.
I have structured my budget to $25 dollars a week that is deposited into my money market account. This deposit gives me a set amount that is easily obtainable within my income and increased if extra money is available. This helps to set obtainable goals that will be easy to follow through with.
The goals of my savings plan has several effects. The short -term goal would is to set up a small weekly deposit into the money market account but be able to increase gradually that amount. This short-term goal will also allow me to invest other funds in my small business. This investment will provide a second income and additional tax deductions.
The mid-term goal is to have a comfortable balance in the account in the event something should happen to my employment income. I read about a savings plan were a couple could save the smaller of the two salaries altogether and use the larger of the salaries to pay bills (Schultz, 2010). Ultimately this would be ideal and an achievable mid-term goal to work toward. The long-term goal for my savings plan is to use the funds from this account to acquire a home and have a substantial secondary retirement income. After...
References: TDECU. (2005-2010). Money Markets. Retrieved from https://www.tdecu.org/Deposits/Money-Market%20.html
Schultz, J. S. (2010). One Saving Strategy- Bank One Salary. New York Times. Retrieved from http://bucks.blogs.nytimes.com/2010/03/31/one-saving-strategy-bank-one-salary/
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