Fall Back into Savings
Fall is here. It’s time again for planning and making schedules; for the school year, for juggling work and family activities. It also a great time to check in on your savings plans and review your accounts. At least once a year it’s important to take a look at how much you have in savings, where the funds are held, and what interest rates you are receiving. Review your findings and make sure your plan still fits your present situation. If not, make the needed adjustments. Performing this check-up will give you peace of mind.
Ask Yourself These 5 Questions:
1. Am I paying myself first?
Make sure a predetermined amount of money is going into a savings account automatically each pay period. If you don’t see it, you won’t spend it!
2. Do I have enough set aside for a rainy day?
Your personal situation is unique, so you need to determine what amount is right for you, but the rule of thumb is a savings safety cushion of three to six months of living expenses. If you don’t feel you have enough set aside, examine your budget to see where you can make little cuts and use that money to increase your savings. This fund should be in an account that you can withdraw from at anytime without penalty just in case that emergency happens.
3. Do I have enough put away to cover the cost of the coming holidays?
Holiday season is fast approaching so take a look at where you stand on anticipated holiday spending. If you don’t feel you are saving enough, tweak your budget to save a little more in the future to be better prepared for next year. Many banks and credit unions offer Holiday Clubs where you can put a small amount away each pay check and then around October they mail you a check so you can start shopping. (Many also offer a Vacation Club option as well that can pay out in the spring.)
4. Saving for something special?
Is there a big ticket item that you are saving for? Maybe your needs or heart’s desire has changed since you first put this item at the top of your wish list. Reassess, reevaluate, and redo your list. Keeping this money in an account that isn’t easy to access cuts down on the temptation to dip into it.
5. Am I planning better now to retire better tomorrow?
If you haven’t looked at your retirement plan in a while or have put your retirement planning off for later, now is the time to make sure you’re on your way to meeting your retirement goals. Look at consolidating 401k’s you might have with a past employer or explore how to maximize, diversify and protect your retirement savings. And if you need help selecting investment options that best meet your needs, let the Financial Consultants at Webster Investments help. You’ll receive free, unbiased guidance. Planning better now can help you retire better tomorrow – so be sure that your retirement plan is on track to address your goals.
Fall is a great time to get back into a routine. Remember to “Fall Back into Savings” just like when you “Fall Back from Daylight Savings Time“. Read the Connecticut Blogger’s post for how to set your clock back this Sunday, November 4th. What ideas do you have for how to save money this year?
Disclosure: Securities and Insurance Products: Not Insured by FDIC, Not Bank Guaranteed, May Lose Value, Not Insured by any Federal Government Agency, Not a Bank Deposit.
Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Webster Bank, N.A. and Webster Investments are not registered broker/dealers and are not affiliated with LPL Financial.