This is the golden rule of financial fitness. A lot of people delay putting money into long term savings because they are already living paycheck to paycheck and can’t see how they could manage with even less in their pockets. Unfortunately, for most, the time never arrives when there is extra money for savings.
All the money gurus suggest saving 10% of your income. If you have been recently discharged from bankruptcy, you’ve probably spent a couple of years in such financial turmoil that the idea of saving 10% may seem impossible.
You’ll have a better chance of success if you start small. Open a separate savings account and start by putting 2% of your monthly income into it as soon as you get your paycheck. Then, two months later, up the amount by another 2%, and keep upping it every two months. By the end of 10 months, you’ll be saving the recommended amount and you’ll have done it gradually enough that you won’t feel like you’ve suddenly been put on a starvation budget.
This way, you’ll eventually have the money for a mortgage down payment, for your children’s education, for sensible investment opportunities, and for retirement. Talk to your bankruptcy trustee about how you might want to manage your savings, based on where you are in life and what your goals and dreams are.
Some employers have employee savings plans, often with some matching contributions. See if your workplace offers such a plan.
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