When it comes to saving money, what is a good rule of thumb? a) keep most of your savings in your checking

When it comes to saving money, what is a good rule of thumb?

a) keep most of your savings in your checking account
b) put aside money for savings each month
c) choose the savings account with the lowest interest rate
d) put anything you can’t afford on your credit card

Related Posts

This Post Has 10 Comments

  1. I believe the answer is: B. Put aside money for savings each month

    By putting aside the money directly to your investment or saving account as soon as you receive your salary, you would eliminate the risk of you going too far and used it for your consumption. Also as a rule of thumb, it would be good for your financial health if you do this to 20% of your total income.

  2. The correct answer is B) put aside money for savings each month.

    When it comes to saving money, a good rule of thumb is to put aside money for savings each month.

    Since the very beginning when you have extra cash, save it instead of spending it. Saving is a good habit that can bring you many benefits in the long run. It is going to help to get good finances in the future. Do not waste your money on foolish things. Save, open a bank account, cover all your necessities including some entertainment, and save the rest.

    The other options of the question were A) keep most of your savings in your checking account. C) choose the savings account with the lowest interest rate. D) put anything you can't afford in your credit card.

  3. I've had a real hard time with trying to save money. I've always spent more than I had really.

    Something I've always heard is to pay yourself X% of your paycheck. I've never really don't that because I've always used my money no matter what.

    Now I'm in a crunch where I need to save up some money. Build up a savings so to speak but am having trouble doing that. I am bad about managing my money.

    Any ideas that I should incorporate? I have always thought about opening a second bank account for savings so I don't have access but don't want to spread myself out too thin.Biggest tip for saving money: Stop spending.

    Until you learn some self control, hints and tips and tricks won't work because you'll still know the money is there and you'll still have access to it Here's two steps:

    Figure out where you are spending money unneccesarily (bars, resturants, eating out for lunch, video games, toys, etc)Reduce that spending

    The best way to do step one is to use a service like mint, or to just keep all your reciepts and tally them up at the end of the month, I'd recommend the first.

    Budgeting isn't neccesarily about saving the maximium amount of money possible, it's about managing your money and making an active longer term decision about where you want to spend it. You are currently making short term passive decisions. 

  4. -Not to make impulse buys
    -Open a savings account that directly adds a set amount of money into it from your paycheck monthly 
    -The '50-30-20' rule(50 percent of your income toward necessities, like housing and bills. Twenty percent should then go toward financial goals, like paying off debt or saving for retirement. Finally, thirty percent of your income can be allocated to wants, like dining or entertainment.)
    -Create a budget 

  5. The correct answer is B) Put aside money for savings each month

    Explanation:

    Saving is the portion of the income that the individual decides not to use today. Then, reserve that capital out of any risk to cover a future need or contingency. It can even be left as an inheritance.

    That is, saving is the percentage of income that the person does not spend or invest. Thus, seek to have a fund for a disbursement that must be made later, for example.

    Saving is a very important element of a family, but it is only achieved through good estate planning. In many cases it is necessary to go to a financial advisor.

    It should be noted that not consuming at present involves an opportunity cost. Therefore, some risk is being assumed. It can happen, for example, that the product that the individual wanted to buy with their savings then runs out in the market.

Leave a Reply

Your email address will not be published. Required fields are marked *