• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Women Deserve Better

Women Deserve Better: For us, that means better information, better support, and better choices. Life brings challenges. We bring empowerment, because we’ll never underestimate women.

  • Work
    • Find a Job
    • Build a Career
    • Take Maternity Leave
    • Thrive As a Working Parent
    • Know Your Rights at Work
  • Learn
    • Earn Your Degree As a Parent
    • Know Your Rights on Campus
    • Finance Your Education
    • Medical Care for Student Moms
    • Housing for Student Parents
    • Child Care While You’re In Class
  • Live
    • Child Care
    • Feeding Your Family
    • Elder Care
    • Housing
    • Clothes
    • Medical Care
    • Getting Around
    • Money Matters
    • Gardening
    • Special Needs
    • Fun
  • Love
    • Adoption
    • Bonding
    • Fathers
    • Your Parents
    • Support Networks
  • About
    • Our Mission
    • Contributors
  • Shop
    • Shop
    • View Cart/Checkout
  • Support Us
  • Donate
  • Home

How to Fund Your Savings Plan

April 30, 2020 by Bethanie Ryan

Everybody told you to save for a rainy day. You didn’t. How can you start now? Here are some ideas for where to start and how to save.

Short-term savings plans – your “rainy day” fund

Everyone should have three to six months’ salary in an account in case of emergency. There are old-fashioned savings accounts at banks, and there are many new “fintech” plans online. If you already have a checking account at a bank or credit union, ask about savings plans that offer benefits for existing customers. Many online savings banks may offer higher rates than traditional brick-and-mortar banks. (Bankrate.com has a list.) Then there are the new players like Acorns and SoFi that offer savings and investment plans. (NerdWallet has information about these.)

Long-term savings plans – your retirement fund 

If your employer offers a 401(k) plan, take advantage of it. Most employers have a matching program, where the employer contributes a percent to your account for each dollar you contribute. Try to contribute at least the amount equal to the match amount to get the greatest benefit, but even if you cannot contribute that much, save something in a 401(k). The dollars you contribute are tax-deferred, meaning you get a current tax benefit (401(k) contributions are deducted from your pay before taxes) and the money grows tax-free until you withdraw. 

If your employer does not offer a 401(k) plan, you can open an individual retirement account (IRA) on your own. Banks and brokerage houses offer individual IRAs. Like a 401(k), the money you put into an IRA is tax-deferred, so you may take a tax deduction for your contribution. NerdWallet as well as Vanguard have information about IRAs. 

There are drawbacks to 401(k)s and IRAs: If you need to withdraw money, there are only a few reasons allowed, and you may pay a penalty for withdrawing before you are 59½ years old. But the long-term benefits are rewarding.

How do I fund my savings account?

If you don’t have money right now, how can you find money to fund your savings account?

First, look at your daily spending habits. For one week, do not use your credit or debit cards. Take money from the ATM to cover “necessary” expenses and live off cash. This will make you aware of how you spend money. Keep receipts from everything you buy. Saving requires that you not spend impulsively.

Second, review your monthly credit card bills. Analyze every charge. Did you really need that purchase? Are there recurring charges or subscriptions that you don’t need?

Third, look at your phone plan and cable bill. If you spend most of your time at home or in a location where there is free Wi-Fi, turn off your data when you are there. If your plan includes unlimited data, look at the option of downgrading and using Wi-Fi. Do you use premium cable channels enough to justify the expense? 

There is a basic rule for good money management: Pay yourself first. Think about how important you, your family, and your future are, and make the necessary changes to protect them.

By Vicki Whitelaw

Filed Under: Live, Money Matters Tagged With: 401K, banking, saving account, saving money

Primary Sidebar

Featured Articles

  • 7 Tips on How to Talk to Your Child About Scary News
  • Know Your Plant Hardiness Zone to Have a Successful Garden
  • How to Lovingly Discipline Your Foster Child
  • How Can You Help with the Formula Shortage?
  • What Do You Do When You Can’t Find Your Infant Formula?
fb-share-icon

Footer

Women Deserve Better

16 hours ago

Women Deserve Better
I can relate. ... See MoreSee Less

Photo

View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

Women Deserve Better

1 day ago

Women Deserve Better
If you need help dealing with loss, please reach out to a qualified grief counselor. It can seem so hopeless and terrifying right now, especially for those of us with young children left speechless as we figure out how to explain to them such devastating world events. We invite you to read our Women Deserve Better article, "7 Tips on How to Talk to Your Child About Scary News." And then, be sure to hug your loved ones tight.www.womendeservebetter.com/7-tips-on-how-to-talk-to-your-child-about-scary-news ... See MoreSee Less

Photo

View on Facebook
· Share

Share on Facebook Share on Twitter Share on Linked In Share by Email

womendeservebetter

Check out "Learn the Basics of Unemployment Benefi Check out "Learn the Basics of Unemployment Benefits," courtesy of Women Deserve Better Expert and legal aid attorney Susan Schoppa.
https://www.womendeservebetter.com/learn-the-basics-of...

 #womendeservebetter
A woman out of work recently sent us the following A woman out of work recently sent us the following email. We wanted to share her thoughts with you:
The most common feelings I experience as an unemployed job seeker: 
1. Rejection/Sorrow. Something is wrong with me… because it cannot be that I don't have more than the required training or education or experience... so it must be me.
2. Anxiety from inadequacy of effort. Something would come along if I just tried harder (more than daily searches, weekly job clubs, outreaches on LinkedIn, etc.).
3. Aloneness. Other people with fewer skills, less education and experience… are getting jobs. They won't understand how alone I am in this. Other people must have a lot of resources to not have to work for this long, and I am barely making it and can't afford things now. I am alone in this.
4. Hopelessness. Scores of applications and letters to employers have gone unanswered for weeks and now months. What's the use?
5. Blaming myself and/or self-doubt. Why didn't I see the writing on the wall and find something while I still had a job? I guess I really am as stupid as these employers think I am.
6. Confusion. I am now out of my routine, so things don't fall into place like they once did. Am I getting dementia? Is this normal?
7. Anger. If my employer thought I was so great to give me a very good review several years in a row, why haven't they told me of other available jobs after this one ended? Shame on them!
8. Embarrassment. People may think I lost my job because I was a marginal or lazy employee. They don't know how hard I worked, and that the termination was due to issues not of my doing. They may see me as someone who deserved this.
9. Fear. What if I can't find a job in time before we lose our place to live?
10. Happiness. It can be a good thing to start over sometimes.
Have you ever felt like this woman? Please know that there is help. Check out our latest article on Women Deserve Better, "Find Help When You Can’t Find a Job":
https://www.womendeservebetter.com/find-help-when-

#WomenDeserveBetter
Are you struggling to pay your rent or mortgage? A Are you struggling to pay your rent or mortgage? Are you worried about losing your home? Here is some information about what could happen if you can't pay all of your rent or mortgage, courtesy of Women Deserve Better Expert and legal aid attorney Susan Schoppa.

www.womendeservebetter.com/how-to-find-legal-help-for-evictions-and-foreclosures 

#WomenDeserveBetter
Load More... Follow on Instagram
Thanks for signing up!

GET OUR LATEST NEWS

ABOUT

  • Our Mission
  • Contributors

SUPPORT US

  • Donate
  • Become a Partner
  • Share Your Story or Your Expertise
  • Promote Women Deserve Better

Women Deserve Better: For us, that means better information, better support, and better choices. Life brings challenges. We bring empowerment, because we’ll never underestimate women.

Copyright © 2022 — Feminists for Life of America • All rights reserved.