Payday will always be the best day of the week. All of our hours of work have finally (literally) paid off. But there’s so much to spend it on, too. The list includes food for the week, birthday and holiday presents for family, a little spending money for ourselves, and, of course, a seemingly infinite number of bills that we need to pay. With all that we need to stretch our paychecks on, it’s so easy to forget, or ignore, our savings.
Retirement may seem so far away, but it’ll come much sooner than you think. Plus, we need the money we earn for so much in the present that it’s hard to put money aside. Aren’t Social Security and a pension supposed to cover our retirement? Of course, these are in place to help with the retirement process, but Social Security and a pension are supposed to be supplements to our savings. These two alone might not provide enough money to live on at the same standards of living as before retirement. And for many workers, the company-provided pension has become a thing of the past.
Retirement isn’t the only reason for setting aside money each paycheck. A set amount for “emergency funds” will always come in handy. Your savings can cushion the financial effects of events like car troubles, medical emergencies and the unfortunate circumstance of being laid off. Savings can help with fun things too, though! Instead of putting that grand vacation you’ve dreamed of on a credit card, take a year or two and set aside a little bit of money from each paycheck so you won’t need to charge your trip.
So how much should you be saving each paycheck? Well, of course, this is going to vary from one individual to another, depending on their circumstances. Anything is better than nothing. Can you spare $100? $50? $25? Whatever works for you, think of ways to achieve your goal: Maybe cook a meal instead of eating out a few times, or switch to the next-lowest cable package for a bit. Regardless of how much you save or how you choose to save it, your future self is sure to thank you for thinking of them.
We welcome the opportunity to put our tax expertise to work for you. To learn more about how our firm can help advance your success, don’t hesitate to contact Kathy Corcoran at (302) 254-8240.
©2024
