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Where you will stash your cash

You can go the route of my grandmother and use the mattress and sofa, but after inflation this will just end up costing you money. Plus if that over juiced power strip sparks and starts a fire you’re screwed. Research, Research, Research, and find what is

best for you. (We live in the information age, it isn’t that difficult) Here are some recommendations anyway…

• Emergency Fund (This money should stay liquid and accessible without penalties)
  • Regular/High Yield Savings Accounts
  • Money Market Accounts

• “BIG Buy” Fund - Usually a purchase between six months and two years away. You will want something with a higher return than the emergency fund, and it is ok to tie the money up because you will not need it until you are ready to purchase. Still you want something with little to no risk of losing the principal.
  • Treasury Bills (T-Bills)
  • Certificates of Deposit (CDs)
  • You may even want to consider one of the more secure futures (e.g. Oil futures)

• Retirement
  • Your options here seem almost infinite, but you know the drill…
  • IRAs (and get yourself a tax deduction while you are at it)
  • Mutual Funds
  • Equities/Stocks

Well congratulations you are ready to start your money saving adventure, just a few things to keep in mind…

• Emergency Fund is for EMERGENCIES ONLY!! This does not include a big sale at Best Buy or Saks
• Be brutally honest as to your wants opposed to your needs (If you save and invest right there will be plenty of money for your wants in the future) Keep within your Fun budget for now
• Ditch the credit cards (Nothing is worth 15-25% interest)
• Forget that your savings exist until faced with an emergency
• Treat your savings quota as a monthly household expense
• Don’t get discouraged. It may be slow going at first but within a couple months you will feel great about the money you have socked away