Are you paying yourself first???

We’re almost halfway through the year and, hopefully, you’ve been staying within your budget, paying all your bills on time, in full, and……Saving!!

Probably the first savings account to have ready is the ‘Emergency Fund Account’….. this is self explanatory.  If an emergency arises, you’ll have the money set aside to pay for it without trying to add it into your budget.

The next two savings accounts sort of go hand in hand….. The 6-9 month (eventually 12 month) Reserve Savings Account and the other is your Retirement Account(s).

Again self explanatory….. the Reserve Savings Account is there should you be out of work for an extended period of time with no income.  If you are on either workers comp or unemployment benefits, then this account is there only as a supplement to that and used for the gap that they don’t cover.  It is not for entertainment or take out etc….. just for necessities.

And the Retirement Account(s) are set aside now….for the future…. when you are no longer working.  Most can’t be touched before 59 1/2 years of age.  So until that time, they ‘do their thing’, gather interest, gain in profit etc.  At age 72 you’ll need to begin taking your RMD (Required Minimum Distribution), required by Uncle Sam….he wants his share.  If you neglect having this set up and taking the minimum out, there will be a stiff penalty and additional taxes to pay.

So, staying within your budget is imperative, as well as saving as much as you possibly can.

It’s Common Sense !!!!!     Save every cent you can!!!!