The How, Why and When for building your savings | Kiboo

The How, Why, and When for building your savings Everyone tells you that saving your money is the right thing to do. But has anyone told you why? Save to help Savings provide a cushion. If you've saved smartly, and saved sufficiently, then even savings that start small could grow large enough to support you and your family through tough times. Save to borrow Banks are more likely to give loans to people who have a history of saving their money along with a good credit score. Having savings proves to banks, mortgage companies that you're responsible with your money. Save to earn Savings also provide a pool of money you can draw on for investments. Taking a portion of your savings (typically 25-50%) and investing it safely is a great way to make your money work harder for you. The 50/30/20 rule It doesn't matter how much you can put away, only that you get into the habit of doing it. Spend your money the smart way: 20% A dollar a day, 20 bucks a week. Whatever you can manage is a great start as long as it's consistent. 50% - on essentials 50% 30% - on fun stuff 30% 20% - pay down debt & build savings Start saving now! 10.2% Over the last 30 years, American savings has 1.4% plummeted, from a high of 10.2% in 1982 to 1977 1987 1997 2007 1.4% in 2005. 1982 2005 53% AGE 32% 33% 32% O 18 -33 25% 34 -45 26% 22% 46 -64 14% O 65+ without retirement without personal savings Source: Bureau of Economic Analysis Kibaa Copyright o 2011 Kiboo LLC. All Rights Reserved. www.kiboo.com