Tips, advice, and the latest news from the savings world.
March 30, 2012
Key Financial Steps for College Seniors and Young Workers
Webcast – April 18, 2012
4:00 pm to 5:15pm EDT
Managing your finances can seem challenging when you are finishing up college or just starting out. In this webcast, you will learn the five steps to get off to a good financial start - how to create a budget, repay your student loans, think like a saver and stay out of debt, invest for the future, and make the most of employee benefits from your job.
The U.S. Department of Labor will be joined by speakers from the Consumer Federation of America/America Saves, the National Endowment for Financial Education, and the Society for Financial Education and Professional Development. We’ll help you get started with information to achieve your financial goals, whether short-term, like paying off credit card debt and student loans, or saving for a long-term goal, such as retirement. By getting a good financial start, you can get time on your side so you can do the things you want to do in the future.
March 29, 2012
by Philip Taylor
You would expect advice on barriers to saving to center around things that are preventing us from saving money and how to remove those barriers from our lives. But I want to flip this concept on its head, and suggest that there may be barriers that you can use that will actually encourage you to save more money in the long run.
After I landed my first job out of college I decided I wanted to save up money for an emergency fund. I also tried to start saving for a down payment on a new car. My strategy was to spend 90% of my paycheck and leave 10% in my checking account until the end of the month. At which time I would transfer the money to a savings account attached directly to my checking account.
This was certainly a good idea in theory. But I always found it hard to reach my savings goals and maintain an emergency fund. Why? Well, truthfully, I screwed it up. Inevitably, the next month I would always find a reason to spend that "savings" in the attached savings account. This was mostly impulse spending. Getting the money back was as easy as doing an instant transfer back to my checking account. In a matter of minutes, I would have my money back in my checking account, which was quickly accessed using my debit card.
Then I discovered a few self-imposed barriers that would make it more difficult for me to take money from my savings. Let's look at how they each work: