7. Regular savings programs and paying yourself first What's the best method for organlzing your saving activities? Virtually all financial analysts agree that it is best to: - Start saving early. - Save regulariy. - Shift to another savings goal and a higher-ylelding investment when you achieve a particular savings goal. Sometimes the most difficult question is, "How do 1 get started and how do I maintain my momentum?" One of the easiest answers is, "5ave regularly and pay yourself first." What do you think it means to pay yourself first? It means making your saving activities your first priority by paying yourself, or making contributions to your savings accounts you pay any other obligations. One way to pay yourseif first is to have your savings contribution automaticaly withheid from your paycheck and directly deposited into your savings account. make your savings contribution only if you have something ieft over after you pay ali of your other bils. The advantage of this saving strategy is that it ensures that funds will be saved-as opposed to saving only if sufficient funds remain after all other bills are paid and any impulse Assignment Chapter 04 Managing Your Cash and Savings The advantage of this saving strategy is that it ensures that funds will be saved-as opposed to saving only if sufficient funds remain ofter all other bills are paid and any impulse purchases are made. ensures that funds remaining after paying all bills and making impulse purchases will be saved. Therefore, paying yourself first imposes finandal on the act of eaving. It is recommended that one of the first goals of a savings program should be the accumulation of an emergency fund equal to three to six months' worth of living expenses. Let's examine this savings objective further. What is the purpose of an emergency living expense savings fund, and what other sources of funds are sametimes used to address these needs? This fund allows you to cover a household's expenses incurred during vacations, holidays, and birthday celebrations. living expenses in the event of a job layoff, illness, injury, or the premature death of an incomn-generating member of the household. However, most people don't maintain an emergency living expense savings fund; instead, they expect to rely on their credit cards to pay their living expenses during these expensive and stressful events. The downside, or negative consequences, of this strategy is that it their wealth since it involves the payment, rather than the receiving, of What type of savings vehicles should be used to store your funds? Which of the following are the factors that should be considered when identifying appropriate savings vehicies? Check ail that apply: This fund allows you to cover a househeld's expenses incurred during vacations, holldays, and birthday celebrations. living expenses in the event of a job layoff, lilness, injury, or the premature death of an income-generating member of the household. However, most people don't maintain an emergency living expense savings fund; Instead, they expect to rely on their credit cards to pay their living expenses during these expensive and stressful events. The downside, or negative consequences, of this strategy is that it their wealth since it involves the payment, rather than the receiving, of What type of savings vehicles should be used to store your funds? Which of the following are the factors that should be considered when identifying appropriate savings vehicles? Check all that apply. The level of past interest rates The length of time you can leave your money on deposit The liquidity, convenience and safety characteristics of the account being considered If you expect interest rates to decrease in the near future, then you should invest in Investments so that you can reinvest quickly when interest rates increase. lock in the higher interest rates before they decrease