Savings Is
Good For You!

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Let’s investigate savings. It doesn’t take much detective work to understand that savings is good for you!

And here’s the good news for millennials – you are saving at a rate greater than any generation before you. Fidelity Investments found that 20 somethings are saving on average 7.5% of their income compared to 5.8% in 2013.

We’ve talked about retirement savings, and how important it is to start as soon as you can, along with the benefits of deferring taxes and saving on how much income tax you pay when you invest in a 401k, IRA, etc.

But what about non-retirement savings?

One strategy to employ is to set a goal of savings out of each pay check, and to make that ‘payment’ to you savings account, just like you pay your rent, phone and electric bill. Over time, you grow your savings account and let your money work for you.

What’s the amount you should save? well, it varies from person to person, but a good rule of thumb is to save 10-15% of your gross income (the amount you make BEFORE taxes are deducted) and use that for both your retirement accounts as well as non-retirement accounts.

It takes discipline, but getting used to a regular savings plan is something all millennials need to consider. It doesn’t take much detective work to understand  – SAVINGS IS GOOD FOR YOU!

April is National Financial Literacy Month, Talkin’ Money’s favorite month! To celebrate the importance of being financially literate, we’re going to post financial literacy tips every day.

How should you manage your money?

09money-illo-superJumboManaging your money should be pretty straightforward, but that doesn’t make the task all that easy. This NYTimes article has some great advise.

Managing your money should be pretty straightforward, but that doesn’t make the task all that easy.

That’s the biggest takeaway from the handful of simple financial instruction lists making the rounds among the New Year’s resolution set.

One list comes in the form of a 4-by-6 notecard that went viral in 2013, now the foundation of a book called “The Index Card: Why Personal Finance Doesn’t Have to Be Complicated.” Another is the 18 steps at the back of Jonathan Clements’s “Money Guide 2016.” An older but beloved (and newly updated for this column) list comes from the Dilbert cartoonist Scott Adams.

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Your A Millionaire!

TALKIN-MONEY03-FrameGrabs17We’ve been telling you that you are all millionaires since we began this series.

Over your lifetimes, you should earn well over a million dollars, some of you will earn even more. Here’s a great article by Yahoo Finance on a 27 year old millionaire – 75-80% of his wealth is through inheritance. For millennials, inheritance might be a major financial component of your future.

Anton Ivanov isn’t your average millionaire.

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For starters, he’s barely 27 years old, he doesn’t work in Silicon Valley and he isn’t heir to a family fortune. He doesn’t live in a tiny house or get his food from a compost garden in his backyard, either.

Ivanov, who shares wealth-building tips on his blog, Financessful.com, made his million the old-fashioned way: He read books. He saved early and often. And he started planning his rise to millionaire status before most kids his age had their driver’s license.

“I’m a testament that if you want something bad enough and you keep working towards it … you will get to where you want to go,” he says. “It was my habits and my principles that made me rich.”

Here’s how he did it.

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