Home > 2015 > Personal Finance

5 Reasons to Start Saving Right Now

Advertiser Disclosure Comments 0 Comments

Making monthly bill payments, saving for a house, growing college accounts, having enough in retirement funds, even just taking a trip — sometimes there are so many things we need money for that it is hard to keep track. But each goal is important and none of them can be ignored. So how do you manage to achieve it all? Check out some strategies to help you reach your savings targets below.

1. You Need an Emergency Fund

Many financial experts advise keeping three to nine months’ worth of expenses set aside in case of an emergency before you start dedicating your money for other goals. It may seem like this effort slows you down, but the fund can help keep you from taking money from other accounts as well as entering or falling deeper into debt. This is the money for the unexpected that means you won’t have to reach for your credit card or tap into your retirement accounts if the car needs repairs or you are out of work for a few months.

2. To Cover Short-Term Needs

Once your emergency fund is in order, you can divide your needs into short-, mid- and long-term goals. What you will need in the next two years can be considered a short-term goal. You need the money for these goals to be liquid, or easy to access (without restrictions or fees). But you also want to be earning interest on this money, so consider using an investment calculator to see how one-, two-, and three-year investments like savings accounts, CDs and money markets can safely help you maximize your funds.

3. Start on Debt Repayment

Working toward financial freedom is important, but you don’t want to miss out on savings by focusing only on this one goal. It’s a good idea to tally up all that you owe and decide how you want to pay off your debts (in order based on interest rates or the size of the debt balances). It’s important to find the style that works for you.

4. You’re Planning a Major Purchase

You will only have a few of these in your life — like cars, homes, and your children’s educations. Since there are higher price tags and a greater time horizon, it may be harder to keep these goals in perspective and actively work toward them. It’s important to find a way to reach these big goals in a sustainable way that keeps you motivated. There are specific options available for savings goals like education (a 529 plan) so it’s a good idea to do your research ahead of time.

In addition to saving money for a down payment or other financing costs, you’ll want to keep an eye on your credit. Making sure you have a good credit score can save you a significant amount of money over the life of your car loan or mortgage by earning you a lower interest rate. You can check your credit scores for free on Credit.com to see where you stand.

5. Retirement!

For many people this is a very long-term goal. Years of working and saving for retirement. It’s a good idea to make sure you are doing it in the best way possible to allow yourself to hit your goal. If your employer offers a retirement program, like a 401(k) or 403(b), it’s generally a good idea to contribute up to the limit to get your employer matching dollars. You may also want to consider additional accounts, like a Roth IRA or IRA. It’s important to think about Social Security benefits and consider the tax implications as you are making and working toward your goal.

It may seem overwhelming at times to be saving for multiple goals at once, but the better you can keep your sights on these targets, the more motivated you can stay.

More Money-Saving Reads:

Image: iStock

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Our Owners

Credit.com is owned by Progrexion Holdings Inc. which is the owner and administrator of a number of business related to credit and credit repair, including CreditRepair.com, and eFolks. In addition, Progrexion also provides services to Lexington Law Firm as a third party provider. Despite being owned by Progrexion, it is not the role of the Credit.com editorial team to advocate the use of the company’s other services. In articles, reporters may mention credit repair as an option, for example, but we’ll also be sure to note the various alternatives to that service. Furthermore, you may see ads for credit repair services on Credit.com, but the editorial team isn’t responsible for the creation or implementation of those ads, anymore than reporters for the New York Times or Washington Post are responsible for the ads on their sites.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team