We all know the importance of having a savings account. You can save for rainy day, unexpected occasions, etc.The good news is, these days we are not limited to just have one savings account. You can have multiple savings account.
By the way, this list doesn't include retirement planning, that is a whole different topic. Before doing number 2,3, or 4, you should establish the 1st savings fund, and set up retirement plan. After you all set with your retirement plans, then let's start the number 2,3, and 4.
Here's the top 4 type of savings that you should have:
Experts say three to six months expenses should help to cover anything life throw at you. The bigger the better, so funding this right away will be a smart move. Prepare umbrella before it rains.This is your 'umbrella'.
2. College Savings Fund
Don't forget your children. Opening 529 plans will help them to have a better future. Give them their best chance to compete with other kids on the block. 10-20 years from now, their competition might be another graduates from different countries! Ensure they have at least a bachelor degree!
3. Birthday/Anniversary Savings Fund
To avoid feeling guilty on splurging money for your loved ones, start the birthday/anniversary savings fund today. This way you can avoid being in debt after getting that new diamond ring for her (or lavish watch for him). Having this savings also help to pay for that fancy dinner you've been dreaming for.
4. Vacation Savings Fund
This one it could be called a luxury savings. Why? Because technically you can still live without travel. But if you like travel and want to see the world, then you better start up the vacation savings fund. This way you don't feel in burden after your vacation done and seeing your credit card bill. Plan your vacation smartly and start putting money away! Bon Voyage!
And as bonus,I'm going to throw in one more savings type that you should have. I heard Christmas is coming in 4 months, so if you celebrate Christmas and all the gift-giving festivities for this holiday, you should open a ... Christmas Savings Fund!
If let's say you have 24 family members for gift giving, rather than buying all 24 gifts in November/December, you can break it down to just 2 gifts a month (starting January). This will help you to avoid having too much purchases in one month. Instead, you'll spread your money to 12 months period. Having a little bit purchases here and there helps. Now, I know it's not practical to buy the gifts right away and storage that in your closet. You could run out of place soon. So I recommend to just stash away the money first, let's say the dollar amount equals to 2 gifts a month, then you can go shopping spree on Black Friday!
Hope this article helps! Let's saving today and reap the rewards tomorrow!
Happy Savings! :)
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