Every Household Should Have a Budget - Savings

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Mortgage and Lending with Bay Equity, LLC 770-634-4021 NMLS #206275 GA 25689

 

Every Household Should Have a Budget.   In the Getting Started blog, you were tasked with tracking all of your expenses for a month. In the Step 2 Blog you were to look at your spending in relation to some general guidelines for how your money should be spent.  Please keep in mind that these are general guidelines.  It should be adjusted to meet the needs of each household.

Now is the time for us to discuss some specific topics about budgeting. I would first like to start with savings.  The general rule of thumb is that your savings should equal 3-6 months income.  So if you make $5000 a month, your liquid savings should equal $15,000-30,000.

Now, here is something to think about when you start saving.  Most banks are NOT offering a great deal of interest on savings accounts and in fact, if you don't have a checking account tied to the savings account, there may be monthly fees or minimum balance requirements.  Talk with your current bank, and maybe even shop around to find the best deal.  The one thing you don't want to happen is your saving account to lose money because of monthly fees. 

The other option might be a money market account, again check on minimum balances and fees.

 

For the other blogs in this series, please click on the links below:

Every Household Should Have a Budget - Getting Started

Every Household Should Have a Budget - Step 2 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

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404.745.8060

 

Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988


 

 

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

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Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Kathy, Bob Stewart mentioned you in his post today... 'Kathy Sheehan was the inspiration for this post as she did a great job of breaking down just how much each household should realistically be spending.''

Aug 15, 2013 12:38 PM #1
Rainmaker
647,093
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Margaret, I didn't see that..... thanks for bringing it to my attention.  

Aug 15, 2013 12:39 PM #2
Rainmaker
3,226,993
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

It's so crazy what the banks are paying (or not paying) in interest these days!

Aug 15, 2013 08:55 PM #3
Rainmaker
647,093
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Larry and Sheila, I had a client that was actually paying her bank every month for the savings account.... it is just throwing money away.

Aug 15, 2013 10:38 PM #4
Rainmaker
1,279,027
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Assistant

Kathy- There are different options for saving and we each need to do the research to determine what will work work best.

Aug 17, 2013 01:17 AM #5
Rainmaker
270,797
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Kathy, I hate those fees. It seems some banks charge fees for anything so it's in your best interest to shop around. You need a bank to store your money but don't freely give it away either. You, as a consumer, have power, use it.

Aug 19, 2013 12:10 AM #6
Rainmaker
647,093
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Donna, excellent point!

Phil, I agree, I don't like paying for something when it is not necessary.

Aug 19, 2013 01:57 AM #7
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