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What's the best way to save for the future?

  1. Athlyn Green profile image97
    Athlyn Greenposted 5 years ago

    What's the best way to save for the future?

  2. profile image0
    screamingposted 5 years ago

    Stay away from credit and stay out of the big box stores. Big box stores make money off of "impulse buyers". People who see it and have to have it. So instead of saving money in those stores, the average people will blow $3,620.00 a year on stuff they don't need, but thought they did. Make a list before shopping and stick to the list.

  3. dpsimswm profile image60
    dpsimswmposted 5 years ago

    If you have a lot of debt over 5% interest, I suggest paying this off first.  Mortgage debt and student loan debt is the good type of debt. As long as you are able to make your monthly payments, keep going. I recently consolidated some revolving loans through my credit union.  Now, I know exactly when that debt will be paid.

    Next, consider your budget and max out retirement savings that have a company match.  If your company matches 50% of the first 5% contributed to your 401k, you are essentially saving 7.5% in your retirement account by contributing 5%.  It's like getting an investment that returns a whopping 50% in the first year.

    Take advantage of dollar cost averaging and invest in a mutual fund or index fund. I've written a hub on this topic.
    http://dpsimswm.hubpages.com/hub/Should … l-Planning

  4. dennis.cherenkov profile image72
    dennis.cherenkovposted 5 years ago

    Great question, and good proactive thinking. As a financial professional I help clients do exactly what you are asking about and more.

    Before I answer your question I would like to recommend a great course in personal finance and you can sign up for one at www.daveramsey.com/fpu hopefully you will have one near you. I think that Dave Ramsey's strategy is very well thought out. Here it is...

    First establish a $1,000 emergency fund. Which will now allow to pay for emergencies without getting into more debt, hopefully.

    Second, start getting out of debt using the debt snowball method as fast as you can (if you have debt, other than a mortgage). This is super important.

    Third, once you are debt free (other than mortgage) build up a "fully funded emergency" fund which is 3 to 6 months of your income. Once you are out of debt and have a fully funded emergency account, then you should start investing into mutual funds, IRAs, 401(k)s etc. The logic is this if you have debt payments at 18% which are guaranteed/for sure it makes no sense to invest in a mutual fund where you maybe earn 12% and it is NOT guaranteed. Basically once you are debt free and financially strong with a solid emergency fund. You will be in the best position to save for the future and do the rest of the financial steps that come later. Yes it will be hard, but it is definitely worth it.

    Contact me if you have any questions.

    Good Luck,

    Dennis Cherenkov

  5. inChristalone profile image62
    inChristaloneposted 5 years ago

    I have to agree with Dennis.  Dave Ramsey or Crown Financial are two of the best programs out there.  Another One that I hear was the 70/30 principle.  You should get to the place where you are able to live off of 70% of your income including all of your debts.
    Give 10%.  If you don't sow into others, you will never truly know freedom.  As a Christian, I give to my church but if you are either not involved in church or are not a Christian, then find an organiztion that you have researched and that you believe in and give to them.
    The last part is to pay yourself 20%.  Save this amount in the safest, highest-yielding instrument you can find.  I believe IRAs are highly recommended.

    1. dennis.cherenkov profile image72
      dennis.cherenkovposted 5 years agoin reply to this

      Thank you inChristalone, I am familiar with Crown Financial as well.  I do prefer to refer my clients to Financial Peace University because it has a lot more to offer in my opinion.

  6. profile image47
    lillian13posted 5 years ago

    Put a little money away each month when u get paid

  7. Ramsa1 profile image61
    Ramsa1posted 5 years ago

    1. Spend less and save more.
    2. Learn about investments.
    3. Invest in what you understand and are comfortable with.
    4. Never, never, never give your money to someone else to invest for you. Never.

  8. Vegas Elias profile image29
    Vegas Eliasposted 5 years ago

    Small Savings is the best method of saving for the future. If you can save very small amounts then it is better to collect cash in a box of earthen savings box and deposit it in your Savings Bank account when it is full. When the Savings Bank account has a decent account balance then it is advisable to deposit in some long term fixed deposit plan.

  9. abo ajoba profile image59
    abo ajobaposted 5 years ago

    Before expending any thing, think whether it can be avoided? This practice will train you to spend rationally, and will result into saving for future