What Are Your Savings Goals?
Ever had your savings disappear? It happens if you don’t have a plan or purpose for that money.
Poor planning and lack of goals is the surest and quickest way to an empty bank account. Solomon said: Precious treasure and oil are in a wise man’s dwelling but a foolish man devours it.
There are 5 main goals for saving.
First: non-monthly budget items. These only come up a few times each year, but you need to plan ahead for them. They include things like property taxes, insurance premiums, auto registration, home & car maintenance, medical expenses, holidays, and child-related items like braces, tuition, sports, and school supplies.
Next are large purchases that WILL have to be made at some point in time. These include things like a car, couch, roof or appliances. Most people finance them with a car payment, home equity loan or credit card. But, why not save and pay with cash! I promise you’ll have less stress if you save for big-ticket items now and then purchase them later with saved money. They’ll cost you less in the long run because you can earn interest in a savings account and you won’t have the cost of financing.
You need an emergency fund with a minimum of $1,000 but ideally enough to cover you 3 to 6 months should you face a catastrophe like losing your job. With funds set aside, you’ll avoid debt and sleep well.
Four: Save for retirement and, finally, if you have children: for college, trade school, or starting a business.
Again, save for non-budget items, large purchases, emergencies, retirement and children. You’ll be glad I told you so!
We have great video courses online to help you with you manage money God’s way. To learn more, Call the Crown Help Line at 800 722-1976 or visit Crown.org