Savings Essay

This essay has a total of 1068 words and 6 pages.

savings




SAVINGS:

Shop around for a bank that offers you free checking and waives ATM fees if you maintain a
low minimum monthly balance in your checking account or in a combination of accounts. This
can save you hundreds of dollars a year.

You also need to sign up with a credit union to minimize your banking costs. To find out
if youíre eligible to join one, call 800-358-5710 and ask for the number of your states
Credit Union League.

Donít put your money in a money market account just because, it pays a slightly higher
interest rate than a plain old savings account. To avoid monthly maintenance fees, you
often have to keep more money in a money market account than you would in a savings
account.

If youíve been charged an outrageous fee for a bank service, complain. Being forceful but
polite will often help you persuade the banks customer service rep to waive the charge.

You also need to resist buying mutual funds on which banks charge commissions. Look into
some of the low-cost mutual fund companies.



INFLATION:

Inflation can drastically reduce the purchasing power of the dollar over time.
If the company you work for has a retirement savings plan or open an individual retirement
account (IRA) at a no-load mutual fund I would say join right now.

If the company you work for offers you a 401K put as much money in the 401K as your
employer will match. A 50-cent match for every dollar you put in is the same as earning a
fifty percent return on investment.

Before you up and quit your job or you find a job that better suits you, check and see if
you have worked long enough to take all your 401K money with you when you decide to leave.
If that is not the case, consider staying for a few more months, because that could be
the difference between thousands of extra dollars in your pocket.

If your work for yourself, check out SEP-IRAís and Keoughs. These plans may permit you to
stock away much more money for your retirement that what you could with an IRA alone.

INSURANCE:

You need enough life insurance to provide for your dependents (spouse and children) so
that they can carry on a decent life style if you were to pass on. If you have infants,
which means that you need to figure out how much they will need to live for at least the
15 to 20 years. When a company offers a flexible benefit plan, you should think
carefully. If you are single and without any dependents, you would want better health
insurance or more disability coverage. What ever you do, donít go without health
insurance, no matter how healthy you may think you are. The easy way to find affordable
coverage is to see if there is a group you can join, such as a trade association, or a
religious organization, that offers group insurance. If you are between jobs, purchase
low cost temporary coverage.

When buying car insurance, check several companies that sell directly to consumers. Also
remember who is driving your car because if they were to get in an accident your insurance
rates will go up not theirs. You also need disability insurance in the event you are
unable to work due to injury or illness. Ideally, you should have coverage that will pay
you seventy percent of your income if you were to become disabled. If you rent a house or
apartment, you need to have renters insurance. The reason for this is in case a fire
breaks out or you are robbed. This way any of those things happen you will be covered.

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