Learning Center






 
Additional Resources
Module 1
Basic Finance
Saving
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Plan for the Unexpected

Be Prepared
There’s an old saying: “expect the unexpected.” That’s especially true when it comes to your financial needs.

Emergency Funds
A common guideline is to have at least three months of living expenses that you can readily access in case of an emergency. Although you want the money to be largely liquid (easily accessible and without withdrawal penalties), you also want to try to earn more interest on this money than you can by keeping it in a savings account. So consider putting your emergency funds in a money market account if you qualify. AND REMEMBER…those funds are ONLY for emergencies like losing a job, a natural disaster or a health problem. Don’t tap into these funds to pay your daily expenses or to pay for "wants" such as a new cell phone or a vacation.


Make It Easy On Yourself to Save

Saving is the Key to Your Goals
In Money Management, you learned about setting financial goals. The best way to accomplish your goals is to save money and stick to your spending plan. The more money you’re able to save, the easier it will be to accomplish your financial goals.

Automatic Ways to Save
The first step is to figure out how much you need to save each month. Once you’ve determined how much, look for automatic ways to save like having money directly deposited into your savings account each month or with each paycheck. If you have checking and savings accounts, you can set up automatic transfers. It’s easier to save when you don’t have to think about it all the time. Plus, automatic savings is a great way to stay consistent and avoid impulse spending.

Getting Help from Your Community
Some communities have created savings clubs — such as the Dominican Sans, the Korean Khee, and the Caribbean Susu — to help one another save money. If this type of community-based plan appeals to you, check to see what is available in your area.

Yes, You CAN Save edge
The hardest part of saving is getting started. Here are a few pointers to help you get started. Pick and choose the ones most likely to work for you.
  • Make your coffee at home instead of buying it
  • Bring lunch, instead of buying it
  • Wait for sales on clothes and home products
  • Use coupons and follow the specials at your supermarket
  • Use the Internet to shop for lower prices on name brand items
  • Use only traditional financial institutions and save on check cashing costs
  • Use the library instead of buying books
  • Shop with a list and don’t be tempted by sale items you don’t need
  • Rent movies on DVD instead of going to the theatre
  • Eat out less and cook dinner at home more often

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