Mortgages by Leslie
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Next Step: Saving
After taking the Stock Options Course and starting a brokerage
account, I set up a savings account. Of course, I recommend doing it the
other way around and saving first. At the time, I was more in need for
additional income than I felt I had the ability to save any extra.
I highly recommend HSBC because the interest rate for a no-fee, no
minimum balance, savings account right now is one of the highest in the
country. It easily beats inflation so you won't be losing purchasing power
with a low- or no-interest account. You need to register online. I've had
great luck using them.
The typical number to try and save is 10% of your income. When I started
saving, I was only able to save 1%. Start with something -- anything! My
plan was to double the 1% to 2% and gradually increase that amount. It
works! What matters is getting into the habit of saving. Please don't think
that because you don't have a large amount to start with that it isn't worth
doing. It is! It will add up, and it does become easier.
If you have higher amounts to work with, there are several competitive CDs
that will provide reasonable cushion so you can have higher-risk and
higher-gain investments elsewhere. Having a cushion of liquid assets
alleviates a significant amount of stress people often feel about their
finances. Even those more affluent and wealthy can be real estate rich and
cash poor on occasion. Make sure you have a liquid cushion for all the
various situations that can come up in life.
Lastly, don't call this cushion an "Emergency Fund." I guarantee that if you
call it an "Emergency Fund", you will always have an emergency. The
words alone will add to your stress.
Have fun with this -- it's your money!
After taking the Stock Options Course and starting a brokerage
account, I set up a savings account. Of course, I recommend doing it the
other way around and saving first. At the time, I was more in need for
additional income than I felt I had the ability to save any extra.
I highly recommend HSBC because the interest rate for a no-fee, no
minimum balance, savings account right now is one of the highest in the
country. It easily beats inflation so you won't be losing purchasing power
with a low- or no-interest account. You need to register online. I've had
great luck using them.
The typical number to try and save is 10% of your income. When I started
saving, I was only able to save 1%. Start with something -- anything! My
plan was to double the 1% to 2% and gradually increase that amount. It
works! What matters is getting into the habit of saving. Please don't think
that because you don't have a large amount to start with that it isn't worth
doing. It is! It will add up, and it does become easier.
If you have higher amounts to work with, there are several competitive CDs
that will provide reasonable cushion so you can have higher-risk and
higher-gain investments elsewhere. Having a cushion of liquid assets
alleviates a significant amount of stress people often feel about their
finances. Even those more affluent and wealthy can be real estate rich and
cash poor on occasion. Make sure you have a liquid cushion for all the
various situations that can come up in life.
Lastly, don't call this cushion an "Emergency Fund." I guarantee that if you
call it an "Emergency Fund", you will always have an emergency. The
words alone will add to your stress.
Have fun with this -- it's your money!