Budgeting & Saving

Budgeting and Saving

November 9, 2009 admin
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California Bankers Association picture

Money is a necessity of life. This is why it is so important to manage your money wisely and start saving early. Making smart decisions now will prepare you for the future and will make your financial dreams come true. Below are some tips on how to make your dreams a reality.

If you want to gain control over your personal finances, you must first figure out exactly where your money is going every month. Keeping track of every expense for one month can be a real eye-opener. You might be surprised to learn how much your family spends on unnecessary things. 

Planning for Retirement

November 24, 2009 admin
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Ensuring your financial security in your older years requires planning, starting now, whatever your age.

You will need at least 70 percent of your pre-retirement income to maintain your standard of living when you stop working. People with relatively low incomes may need 90 percent. Social Security will probably pay you less than half of what you'll need, so you must develop other sources of income to make up the difference. 

Saving for the Future

November 24, 2009 admin
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If you want to:

  • Set aside money for emergencies
  • Make a major purchase
  • Take a nice vacation
  • Pay for a child's education
  • Prepare for retirement

. . . you must save some of the money you earn instead of spending it right away. The easiest way to save is to put an amount each month in a savings account as soon as you get paid and before you have a chance to spend it on something you don't really need.

Think about this: If you set aside just $10 a week starting when you are 25 and put it in an account earning 4 percent compound interest, you will have saved about $2,800 by the time you are 30, about $16,000 at age 45, and about $40,000 at age 60. If you save more than $10 a week or earn more than 4 percent, you will save much more over time.