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Family Budget and Savings Once you have your new start, it is very important the your family budget starts to provide for savings. There are two kinds of saving--short term and long term. You should plan to do both. Short term saving is saving for things you want like a vacation or an appliance. Short term savings also includes saving for things you will need, like repairs for the car. You do not want to charge those things and pay interest on them. You want to have money saved to pay cash. Some people have been charging those things so long that they cannot imagine saving money or paying cash. These people say to me, “if I don’t have a credit card, how will I pay for the car when it breaks down” or even “how will I buy schools clothes for the kids in the fall.” The way to pay for things after the bankruptcy is with cash. And if you aren't paying interest rates, you can start saving cash. Long term saving is primarily saving for retirement or saving for college for the children. Long term savings can include 401(k) at work and possibly additional retirement like an IRA. The best internet site I know of on family budget and savings is www.choosetosave.org. Click on their financial tools and look at the budget calculators. It is primarily funded by the Fidelity Mutual Fund Company. |
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