In Washington state, there are multiple activities this week to help citizens “Build Wealth, Not Debt”.
From our Governor’s Office:
“Understanding that having emergency savings, retirement funds and being able to manage one’s debt are crucial to Washington residents’ personal financial security, Governor Jay Inslee has proclaimed Feb. 25-March 2, 2013 Washington Saves Week.” www.dfi.wa.gov/financial-education/wa-saves/pdf/2013-proclamation.pdf
“The campaign theme “Set a Goal. Make a Plan. Save Automatically.” is aimed at reminding consumers to utilize the automatic payroll deduction options at their place of employment to begin building an emergency fund, create a retirement fund or develop a targeted savings fund for their future.”
This ties in with my business philosophy, and using the automatic options available to you is a refrain my clients hear often. We all need a little boost to get the money in the right place, whether you call it a jar, an envelope or a savings or retirement account. In the past, many people were encouraged to use payroll savings to buy US Savings or War bonds.
Right now, your choices can include:
- your savings account linked to a checking account,
- a savings account at the “First National Bank of Inconvenience” * [location varies],
- a stock mutual fund
- or even a charitable destination.
One well-known financial writer [and former wealth manager] David Bach trademarked the phrase “The Automatic Millionaire”.
Here is one way to begin: Set up an automatic transfer to from your paycheck to an account. It can be a savings account and the transfer can begin at $5 per paycheck. The habit is the first priority. After you have saved some emergency funds (everyone’s number is different), from $100 to $500 to a minimum of three months expenses, then you can set a new goal.
You might be surprised at how accommodating your HR department can be. One company that I work with will send funds to as many as ten different destinations on your behalf.
America Saves has programs on homeownership, surviving a financial crisis, and free tax assistance offered this week in our state. For an event near you, check this calendar.
*No disrespect for banks here, just a label created for keeping your funds in the bank or credit union.
- A 50-Something’s Guide to Starting to Save for Retirement (community.ally.com)
- America Saves Week (unionstatebank.wordpress.com)