Saving makes a world of a difference Published Aug. 9, 2007 By Airman 1st Class Kali L. Gradishar 92nd Air Refueling Wing Public Affairs FAIRCHILD AIR FORCE BASE, Wash. -- Are you the kind of person who hasn't trusted the bank since the Great Depression and save your money under the mattress? Are you an active investor with a majority of funds in some sort of account or another? Or do you happen to be the type of person who just doesn't bother to save? If you answered yes to the latter, take a look at your situation and ponder this: If there were some type of disaster in your life - you lost your job, a family member got sick or passed away, or your car broke down - how would you continue to pay for the necessities of life? "It is recommended that you have approximately six months' worth of living expenses saved up in case of an emergency," said Della Gooding, Airmen and Family Readiness Center financial adviser. Having that emergency money can provide a sense of relief in a financially stressful situation. Though, savings are also useful when other circumstances arise - having a child, taking a vacation, working toward retirement, making purchases and filling up the gas tank. "Saving is the most vital and basic way to stop living from paycheck to paycheck, and there are many ways to go about it," Ms. Gooding stated. "Certificates of deposit, money market accounts and basic savings accounts are all good resources for saving." A good starting place for finding savings and investment information is at your primary bank or credit union. They can generally supply the most current rates of each type of investment offered and offer advice as to which account would best suit your needs. Then, find out how much money can be set aside to place into the account. Creating a budget is one way of going about this process. Track your expenses to find out where your money goes, and find a way to cut back on spending, if necessary. Do you buy a lot of movies? Do you have services on your cell phone account that you don't use often enough to justify paying for them? Cutting down on habits that seem like minimal expenses can really add up. Instead of buying a coffee on the way to work every morning, make your own coffee instead; try to cut back on the smoking; or don't eat out on a regular basis. These can be challenging lifestyle changes, but can greatly increase the amount of money available for savings. "If it's difficult to set aside money from each paycheck, allotments are a simple way of putting the money into savings before getting the chance to spend it," Ms. Gooding said. Saving can reap hue benefits and can often decrease the amount of pressure during straining times. It begins with making the decision to save, but once you set your mind to it there are no limits. (This story is the fifth article in a five-part series on finance issues.)
