Provided by America Saves, Think Like A Saver is a podcast that provides real life saving guidance. For Episode #3, click here or read the notes below.
Life is exciting, and you always have a choice to make when it comes to spending or saving. However, with every choice you make, you may also be choosing to not do something else.
For example, spending a lot on little things now may mean that you won’t be able to save money for life’s milestones later.
Milestones often seem far away, but life comes at you fast. So if buying a home, paying for education, and having a healthy retirement are goals of yours, then saving for them now has to be a priority.
In times of economic hardship, it can be especially difficult to set money aside. What we learn in this episode is that economic downturns will continue to happen - but so will economic expansion.
That’s why it’s especially important to save when times are good - so that you have money to fall back on when you may need it in the future.
When reaching life’s major milestones, you often have the choice to either save in advance, or go into debt when that time comes. Examples are:
College savings - You can either take out student loans or save in advance using a savings vehicle such as a 529 College Savings Plan.
Buying a home - While most people can’t purchase their first home outright, you can save for a down payment. If you do not have enough money for a down payment, you might have to take out an FHA loan to cover the down payment.
Retirement - It is important to take advantage of compound interest by saving for retirement early. You can join your company’s 401k or 403b, start a Roth IRA, or contribute to a SEP IRA. Alternatively, you can work longer and live off of a fixed income such as your Social Security, which typically covers minimal expenses in retirement. If your company offers a match on your retirement plan, you should take full advantage of it.
Ultimately, saving early and saving enough is very important, and should be factored into your monthly budget.
Financial Counseling webpage: Personal Finance Program
Housing Resources:
- Next homeownership class in Boulder
- Homeownership class options-Saturday
- The Unexpected Costs of Buying a Home
- Weighing Your Options: The Highs and Lows of Housing
- Is Homeownership Right for You?
- Homeownership Checklist
- Think Like a Saver Podcast, Episode 6: Buying Your First Home
Education Resources:
- 8 Ways to Save for Your Child’s Education
- Think Like a Saver Podcast, Episode 7: Paying for Education
Transportation Resources:
Retirement Resources:
- Investing Basics with Boulder County Workforce
- 6 Steps To Jumpstart Your Retirement Journey!
- Questions To Ask Yourself When Saving For Retirement
- Saving Outside of Work Through an Individual Retirement Account (IRA)
- Saving at Work Through a 401(K) Plan
ABOUT THE PERSONAL INVESTMENT ENTERPRISE (PIE) PROGRAM
The Personal Investment Enterprise (PIE) program is a local savings program provided through Community Action Programs of Boulder County and Mile High United Way. The program is designed for low-income families to enroll in financial literacy classes and save through a matched saving account at a rate of 4 to 1. The first step in applying to the program is to contact Community Action Programs at Boulder County. They can be reached at 303-441-3998 or at [email protected]. For more information on the PIE program visit https://www.bouldercounty.org/families/community-action-programs/personal-investment-enterprise/ or https://unitedwaydenver.org/personal-investment-enterprise-pie-program/.
