Long-term Savings and Financial Planning Tips
Have an emergency savings account. Typically,
having two to three months of living expenses in a readily
accessible account - savings or money market is recommended.
This account should only be tapped if you lose your job or have
major, unforeseen expenses. Emergency savings will help ensure that
you don't have to borrow from your retirement nest egg or take out
additional loans that would push you into debt.
Try to save money for long-term goals, such as your
retirement. If your employer matches a portion of your
payroll contributions to a tax-advantaged retirement savings plan,
allocate enough to get the maximum match. Not participating means
you are passing up free money and perhaps losing out on a valuable
Turn a debt payment into a deposit. If you pay
off a debt, such as the outstanding balance on a credit card, or if
you make that last loan payment on your car, put that money to work
as part of your savings.
Save, don't spend those unknown gifts. If you
receive a large sum - perhaps from an inheritance, an insurance
payment, a tax refund or a bonus at work - deposit that money into
a savings or investment account before you're tempted to spend
Review your insurance coverage. Every year,
review your health, life, disability, renter/homeowners, auto and
personal liability policies to make sure you are adequately