Other savings - you can think about this when you have your emergency fund completed and retirement on track.
Sometimes life’s financial issues are foreseeable. Examples may be - you know you will need a new car in five years. You know your child will be attending college in ten years. You may know that you want to purchase a home in the future. These sorts of large and foreseeable expenditures should be prepared for in a separate "bucket" than the above two. You can get a little more adventurous here with the account type. There are certain accounts that a financial adviser may recommend to you that will offer advantages over a standard savings account. As these things are not essentials like an emergency fund and retirement savings are, the rate of saving is completely up to you and your needs.
Your credit union is a great place to set up individual accounts for each of your "buckets." Speak with any of our Member Service Representatives and they will be happy to assist you.
So, the act of saving is simple. But as you can see the details are a little more complicated and are important to consider.
The savings you end up with will be the result of two things mainly: the rate at which you put money in the accounts and the rate at which they earn interest. But that’s a topic for another day.
See you Monday!