Maine Extension Homemakers

Unexpected expenses can break a family budget.  However, a car repair, a minor health problem, and a broken appliance are all “emergencies” we can plan for.  Set aside money each month for unexpected expenses in a savings or money market account. When you establish an emergency fund, money will be there when you need it. […]

“Pay yourself first” is advice we all need to take to be successful financially.  Set aside a few dollars each month to use for financial goals or emergencies.  Those small amounts will grow into larger amounts. Save $50 a week at age 35 and you’ll have $217,645 at 65 assuming a 6% average annual return. […]

With compound interest, saving just 1% more of your pay ($400 on a $40,000 income) annually can provide tens of thousands of dollars more for retirement.  If you’re 25, 35, and 45 and earn $40,000, you’d have $164,523; $66,623; and $24,436, respectively, by saving just 1% more of what you earn, assuming an 8% average […]

If you’re saving in a tax-deferred employer retirement plan, try to save more (e.g., increase from 2% to 4% of pay).  The best time to “kick it up a notch” is when you receive a raise or a household expense (e.g., car loan, child care) ends.  For more savings information, visit http://bit.ly/fWpOBu. For more information […]

Employer retirement plans (e.g., 401(k)s, 403(b)s) are a good place to save. Contributions are deductible on federal income tax returns (e.g., a worker with a $32,000 salary who makes a $2,000 contribution pays federal tax on $30,000).  There is also tax-deferred growth of principal and investment earnings. For more saving information, visit the America Saves […]

Make savings an “expense” in your spending plan (budget), just like rent, utility bills, or a car payment.  Automate savings through a credit union or retirement savings plan or through monthly deductions from a bank account to purchase U.S.savings bonds or mutual fund shares. For more information about saving, visit the America Saves Web site […]

Want to get serious about saving? Follow this four-step process: 1. calculate how much money you need for your goals (type “financial calculator” into an Internet search engine), 2. plan how to accumulate the money you need, 3. implement your plan and save, and 4. reassess your progress every year. For more information about saving, […]

Want some great financial advice from some of the nation’s leading financial experts…for free? Seriously, this service really exists and nobody is trying to sell you anything. The America Saves program posts monthly messages from e-wealth coaches about topics related to savings and personal finance. To view what they have to say, see: http://bit.ly/ASWCoach. For […]

Serve smaller food portions.  Not only does this save money, but it is also better for your health.  Currently about 31% of Americans are obese (30 or more pounds over a healthy weight) and about 65% of Americans are either obese or overweight (10 or more pounds over a healthy weight).  Save the money you […]

An easy way to see how long it will take for your savings to double is called the “Rule of 72.”  The formula doing a calculation is: 72 divided by the interest rate equals the number of years it will take for your money to double.  For example, at an average annual return of 7%, […]