In this savings episode, John explains the many ways to save, and the proper amounts based on your income. He emphasizes its place as the foundation for your financial plan.
Don’t miss John’s fundamentals:
- Think of yourself as a business—savings is a way to invest in yourself.
- You can save money and still grow your wealth over time.
- You need to set aside a certain amount of money every single year as a percentage of your salary. There are many pressures that will quickly erode whatever you’ve accumulated.
- The first step is to be truthful about where all your money is going. Even if you currently have a negative savings rate, you can still reach the goal of establishing a positive savings rate and growing your wealth.
- There are tried and true formulas to help you establish a healthy savings rate. It’s important to tailor them to your family’s needs.
- Should have about 50% of your annual expenses in short-term savings to preserve liquidity.
- One way to save is to check your financial plan for “leaks”. These are places where your money is being petered away due to poor structure.
Listen to this episode to find out how to check your financial plan for leaks, and how to establish your appropriate savings rate. Sit down and talk with us: if you are new to Smallwood Wealth schedule a Wealth Curve Conversation hereor call 732-542-1565.