This post is part of a series based on Laine’s Home Economics: 50 Ways We Paid Off Our House on One Income
According to the BEA (U.S. Department of Commerce’s Bureau of Economic Analysis, the personal savings rate for
April 2011 was 4.9% . I calculated our personal savings rate a few years ago, before paying Catholic school tuition among other things, and found ours was 22%. It’s time to look at our personal savings rate again, and make sure we’re still at the same level, and work on increasing it. Hands down, the best way to increase your personal savings rate is to make it automatic.
Making savings automatic:
- have a serious conversation about needs vs. wants with yourself, your spouse, your children
- automatic withdrawal to separate savings account
- maximize investment in 401(k)
- maximize investment in IRAs
- set up an emergency fund and make the savings automatic, and bank any windfalls
- after saving for yourself, maximize any investments you have for your children’s education
Previous Posts in the Series:
Tithe
Give to the Poor
Pay Back All Debts
Save, Save, Save
Make a Budget
Freedom Account
Utilities
More on Electricity
Electricity Again
Cooking from Scratch
Thrifty Thursday at Coupon Teacher and Frugal Friday at Life as Mom
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This is our next step after paying down two final credit cards: SAVINGS! Thanks for sharing!
I do need to take a look at our savings again because it has taken a hit over the past 2 years thanks to some unexpected expenditures. I’m really worried about the economy so my dh and I are being more mindful of how we spend and save.
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