What's the best method for organizing your saving activities? Virtually all financial analysts agree that it is best to: - Start saving early. - Save regularly. - Shit to another savings goal and a higher-yielding investment when you achieve a particular savings goal. Sometimes the most difficuit question is, "How do I get started and how do 1 maintain my momentum?" One of the easiest answers is, "Save 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, of making contributions to your savings accounts you pay any other obligations. One way to pay yourself first is to make your savings contribution only if you have something left over after you pay all of your other bills. have your savings contribution automatically withheld from your paycheck and directly depos ted into your savings account. The advantage of this saving strategy is that it ensures that funds remaining after paying all bils and making impulse purchases will be saved. ensures that funds will be saved-as opposed to saving only if sulficient funds remain after all other bills are paid and any impulse purchases are made. Therefore, paying yourself first imposes financial on the act of saving. It is recommended that one of the first goais of a should be the accumulation of an emergency fund equal to three to six months' worth of living expenses. Let's examine this savi ir. What is the purpose of an emergency living expense savings fund, and what other sources of funds are sometimes used to address these needs? This fund allows you to cover a household's Wing expenses in the event of a job layotf, lilness, injury, or the premature death of an income-generating member of the heusehold. expenses incurred during vacations, holidays, and birthday celebrations. However, most people don't maintain an emergency living expense savings fund; instead, they expect to rely on their credit cards to pay their Ilving 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 liquid ty, convenience and safety characteristics of the account being considered If you expect imerest rates to decrease in the near future, then you should invest in investments so that you can lock in the higher interest rates before they decrease. reinvest culddy when interest rates increase
