#FinancialFridays: Nest Eggs – A wonderful way to prepare for our future. Learn more here.
What is a nest egg you ask? A nest egg is a sum of money that has been saved for a specific purpose. This savings is generally designated for longer-term goals.
This is a good time to think about your goals and what it will take to reach them.
Before you start your “saving” journey, be sure to ask yourself these questions.
What is one of your goals?
How much will that goal cost?
When do I want to reach that goal?
How much do you need to save per month to reach your goal?
I want to save $900 for Christmas so I can enjoy Christmas and not add to debt.
Christmas can be a joyful time of the year… and it comes with a lot of pressure to spend, spend, spend! Planning ahead of time will help to lower the financial stress during the holiday season. Pick an amount that lets you cover gifts, transportation, and special food.
Steps to take:
– I will set realistic amounts for covering important costs for Christmas.
– I will buy things for Christmas over November and December.
– In order to save $900 by November 1st, I will need to save $30 per week.
– I will speak with my bank the first week of April to set up a separate savings account where I will deposit the money for my Christmas Fund.
– I will set up an Automatic Transfer from my main account into the new account to come out every Friday.
I want to save $1,500 in an emergency fund by May 2023.
An emergency fund gives people peace of mind and the ability to deal with unexpected events. The importance of this has become even more evident during the pandemic. Pick an amount that lets you cover your expenses for at least one month. Remember that when you use money from the emergency fund, it should then be replenished over time to the amount you have determined.
Steps to take:
· I will write a list of the things that I consider emergencies and would be the only reasons I take money out of the emergency fund.
· In order to save $1,500 by May 2023, I will need to save $62.50 per month.
· I will speak with my bank during the first week of May to set up a separate savings account or Tax-Free-Savings Account (TFSA) where I will deposit the money for my emergency fund.
· I will deposit $62.50 into the new account for May. (This may be a good thing to do with your tax return if you received one.)
· I will set up an Automatic Transfer from my main account into the new account to come out one day after my income usually goes into my account.
By following these suggested steps, you will be on your way to building your nest egg which will be there for you when you need it in the future.
If you need help improving your financial situation or need helpful budgeting advice, our Financial Literacy Program can help. Contact Caroline, our Program Coordinator at 519-378-4773 or email her at email@example.com.