Banking On The Future: The Smart Way To Save

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By Mia Bolaris-Forget

Someone, who shall remain nameless recently helped their teen “invest” in an over $200 dollar cell phone and helped her with a plan that includes internet and text messaging, a package that even with a full-time career I personally find an un-necessary expense.

And, while this lovely young lady burgeoning on the edge of adulthood does hold down a job and pays her own bill, has little to nothing in the form or a bank account, in the form or credit or savings for University/college and beyond.

Why do I bring this up? Well, because according to investment experts, the best time to “save” is when one is young and the (financial) necessities of life are minimal and the prospect of needing a nest egg, in the far off future.

In fact, experts seem to agree that the best time to save for the future is during the present. And, they add, the sooner young adults and young couples/newlyweds get started, the better. From saving accounts, to personal savings, wedding accounts, new car accounts, home and home-improvement savings, etc. they suggest that a portion of each paycheck should be allocated to at least some, if not to each.

Financial aficionados note that the allocation of every paycheck, especially as it results to “end of month investments” suggests one of three scenarios: 1) Making significant strides in savings and advancing your future; 2) Living paycheck to paycheck and merely making ends meet; or 3) falling financially behind, a trend that may mark your financial forecast for the future.

Your best course and plan of action note financial officials is developing a “storehouse” principle” and putting money aside, before spending what you earn. From investing in a high interest yielding savings or checking account and stashing some extra cash (out of each pay check) in your “piggy bank” to making a “considerable” contribution to your 401(k), it’s important to remember that every little bit counts and will ultimately add up to more than you may have bargained for. Otherwise, say experts you are always at risk of falling behind and potentially, especially with the continually increasing cost of living, going into debt.

They say, the only way to get ahead is to build your reserves a little at a time. Take the money you’d normally spend for lunch or a frothy latte and put it in an “untouchable” account, even if it’s only $10 or $20 dollars a month, adding that savings should be seen as just as important as paying off debt, since having zero debt and no money won’t feel quite as good. So, in addition to meeting monthly expenses and NOT accumulating interest on expenditures, they strongly suggest setting at least a small portion aside for savings.

Long Island Money & Careers Articles > Banking On The Future: The Smart Way To Save