MoneyTalk: Save with a Plan

Resources from the Podcast

Three archived MFLNPF webinars:

Shownotes
What Should People Save Money For?
  • Emergencies, short-term goals, medium-term goals, and long-term goals
Can you give some examples of each type of goal?

3-6 months expenses, vacation, car, retirement

How Can People Start Saving Money?
  • Mentally tell yourself that you are going to do it and set savings goals with a price and time deadline
  • Having a specific goal is a lot more motivating than saving for saving’s sake
Walk me through the goal-setting process from start to finish.

An online calculator, worksheet.

When Should People Start Saving Money?
  • Start as soon as possible. If you are not saving money currently, the best time to start is today
  • Increase savings when income increases or expenses-like loan payments- decrease
What are things people can do TODAY?

Sign up for TSP, change jar, savings challenge

America Saves Encourages People to Save With a Plan…What Does “Saving with a Plan” Look Like?
  • Research the total cost of your savings goals (e.g., a vacation trip or buying a “new-to-you” car)
  • “Do the Math”: divide the cost of the savings goal by the number of months to save to get periodic savings
  • Use a worksheet or online calculator to determine the annual, monthly, or per-paycheck savings amount
  • Prepare a list of goals with the cost of each goal, its time deadline, and amount of time to save periodically
Give me an example of planned savings.

$10,000 goal, 3 yrs., $3,333/yr., $128.20 bi-weekly.

What Are Some Tools and Resources to Save with a Plan?
What does research say about planned savings?

Planners save more at all income levels.

What are the Benefits of Saving with a Plan?
  • A plan makes you more future-minded; it forces you to think about what you want and when.
  • A plan helps you see your progress; if you save $2,500 toward a $5,000 goal, you are halfway there.
How often should people review their saving plans?
  • Re-evaluate your savings plan at periodic intervals like every 6-12 months; you need time to see progress.
  • Also re-evaluate your savings plan when life circumstances change (e.g., a big raise or marriage).
What are Some Final Tips for Saving with a Plan?
Where can military family-serving professionals get more information about planned savings?