Personal Savings

Calculator Even making small changes to your regular, everyday behaviors can really add up over time. The real keys to success are commitment and consistency. Remember, every dollar you save is an investment in your financial future. So let's get started. From tips to tools, we'll give you the information and assistance you need to succeed.

SAVINGS STRATEGIES   TAX REFUND & BONUSES   TIPS FOR SAVING $   CERTIFICATE LADDERING   CALCULATORS  

TAX REFUND & BONUSES

It's no secret many Americans aren't good savers. In part, that's because spending is a lot more fun. To jump-start your savings, use your tax refund or your performance bonus for start-up money to fund your financial progress. Here are 5 ideas about how to use your refund or bonus to boost your savings:

1. Create, or add to, your emergency savings fund. Most people don't have the 3 to 6 months of living expenses set aside that experts recommend - a fund that's put in place so you don't have to rack up debt during a period of financial uncertainty. Consider opening a separate savings account or a short-term savings certificate so you're not tempted to "dip" into your emergency savings for regular expenses.
2. Start a vacation or holiday fund. Start planning and putting money aside now for your next year's family vacation, holiday trip, or gifts. You will be more able to enjoy those special events knowing that you already have the money saved instead of going into debt for those expenses.
3. Open, or contribute to, an Individual Retirement Account (IRA). Give a boost to your retirement savings. Visit the Retirement tab on this Save Smart web site to use planning tools to compare Traditional and Roth IRAs, determine your eligibility to make contributions, and open an IRA online.
4. Make your first personal investment. There's no such thing as "too little" money when it comes to investing. It's just a matter of finding the right investment tool for the amount of money you have to invest, how much risk you feel comfortable taking, and when you need to be able to access that money.
5. Open, or add to, your children's college savings funds. The money will grow and earn interest to help you achieve a personal goal of sending your child to college.

What if you want to splurge? Consider splitting the difference. Instead of spending all of your tax refund or bonus, spend half of it and put the other half toward your savings goal. As you continue add to these accounts, you'll begin to have real peace of mind.

Visit our Savings Strategies section to get even more ideas about how to keep saving throughout the year.