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The Setup:

Do you want to save more in the new year? Is your emergency fund set up? Join us today as we discuss savings goals for 2022 and how you can reach those goals.

The Combination and Key Points: 

On this episode of Unlocking Your Financial Future, we are finishing up our two-part series on financial resolutions for 2022. We’ll be discussing emergency savings, employer-sponsored plans, other types of retirement accounts, and more.

With the new year, a lot of people want to start saving more money. So, where do you start? You’ll want to start with the building blocks. What is your budget? After calculating how much you make versus how much you spend we can gauge how much you can save.

Starting an emergency fund is probably where you will want to start. It’s recommended to have 3-9 months of living costs saved up. That way if something does happen, you will have a reserve to pull from.

Why is an emergency fund necessary? You may have a job and be excited about putting money directly into the stock market and employer-sponsored plans. However, when you start putting money in a 401(k) you can’t take money out without a large fee. In contrast, an emergency fund is usually in a checking or saving account, something easily accessible.

Throwing your money directly into the stock market can be dangerous. If you throw $10,000 in the stock market, that money is going to go up and down. We want you to have a safe emergency fund and then we can develop a plan to invest further.

Once you have an emergency reserve, you can customize your plan and start investing in the market and in retirement accounts. Your plan should be customized to your situation. Do you have an employer-sponsored plan? Do they match what you put in? If you are just starting to build your savings, set a comfortable goal amount. You’ll probably see more progress and feel better about your progress by the end of the year.

If you have any questions, please reach out to us at https://www.baschrock-fg.com/ or give us a call at 330-473-1060

To hear more you can listen to the full episode or use the timestamps below to find a specific segment.

0:39 – New year planning

1:45 – Having a written plan

2:16 – A changing plan

2:39 – Where to start saving

3:50 – Why a budget is necessary

4:23 – Being truthful with your budget

5:16 – Planning for an emergency fund

6:14 – Investing in the market first

7:28 – Where to invest next

8:31 – Looking outside employer accounts

9:46 – Highlighting an end goal

11:23 – Saving in 2022

Key Quote: 

Watching your money sit and collect dust in a savings account where it’s not really earning any interest is not the ideal situation, but it does serve its purpose.

Thanks for listening to another episode of Unlocking Your Financial Future. We’ll talk to you again next week!


Related Content:

Financial Resolutions for 2022 – Part 1

Frequently Asked Questions About 401(k)s

Five Outdated Financial Strategies