Remember your financial goa
ls? Set aside money in your budget each month or there may be nothing left for you to save!
Pay yourself first. Make savings a fixed expense in your budget. Financial advisors recommend saving 10% of your take-home pay.
Make saving automatic. Arrange for part of your paycheck to be directly deposited into an account each pay period.
Save for emergencies. According to research, only 38% of Ohioans have sufficient emergency savings. It’s recommended that individuals have an emergency fund of 3-6 months’ worth of living expenses.
To calculate the total amount you will need to save for emergencies:
- Look at your budget for the month. Identify all necessary expenses such as groceries, utilities, rent or mortgage payments and insurance.
- Total all expenses and multiply by 3 for 3 months or 6 for 6 months.
Saving is simply delayed spending; you must plan for future spending in your budget now!
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Author: Kristen Corry, M.A., Extension Educator, Family and Consumer Sciences, Monroe/Noble Counties; Buckeye Hills EERA; corry.10@osu.edu
Reviewer: Polly Loy, M.S., Extension Educator, Family and Consumer Sciences, Belmont County; Buckeye Hills EERA; loy.1@osu.edu