Tips For Budget Planning: Investments and Savings By Jack Chary At Isnare.com Ezine Articles

Even in today’s economy, its important to have a section of your budget dedicated to your investments and savings. No matter how tough times are, when you don’t put money toward your investments and saving you are robbing yourself from your future. Because if you get laid off from your job or have and emergency come up, you will need these things to support you until you can go back to work. Even if you can only budget in $20 or $30, you should commit to saving what you can. Here are some important items you could include in this portion of your budget.

1.)401K or IRA: A lot of companies contribute to this for you, directly out of your paycheck. But a lot of companies are also cutting this out of their employee benefits in order to save money in these desperate times. The good news is that a lot of 401K’s and IRA’s are through another company and those company’s will allow you to keep contributing even if your employer quits contributing to it. You should continue to set aside the same amount of money they were taking out every week and continue to invest that money on your own. In today’s world, you can’t depend on social security, you are going to need another source of income and 401K’s and IRA’s are a great way to do that.

2.)College Savings: This money you are setting aside for your children to use to go to college. The cost of tuition is on the rise as a result of the economy, and you shouldn’t count on your child getting an amazing scholarship. By investing money into a college savings, you will help your child make some what of a dent in all the debt that are going to incur while getting their degree.

3.)Savings/ Emergency Fund: The recommended amount of money you should have in your savings account is three months worth of income. By keeping this amount in your savings account you are helping to protect you and your family if you were to ever lose your job or get hurt. If you had to pick one, I would suggest investing the majority of this part of your budget into some sort of savings. Because this is your go to source of income if something prevents you from being able to work. While it benefits will only last a short period of time, you will be more than happy you did this.

These three things should be an important part of any budget! In today’s economy it may be hard to come up with the money to put toward these things. Especially when all you can think about is paying your bills and paying down debt. But, even if its seems like a minuscule amount, every little bit you can put towards savings or your 401K will benefit you and your family in the long run, because investing in these things is like paying yourself. Plus, it’s no fun to work so hard for what you have if you can’t put a little away for a rainy day.

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