A Savvy Savings Plan For Women

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Can you spare $21 a week?  If you can save that much every week for one year, you will have saved over $1000 at the end of that year.

I think just about everyone worries about having enough money to take care of themselves when they are older.  But for stay at home moms without a regular paycheck, this can be an especially stressful concern. I came across an article in Redbook about how women should have and deserve to have, a secret money stash. The author gives a very straight forward and easy way we can start saving money for our golden years (or for whenever the day may come where we need our own money to fall back on!)

If you take just $3 a day and put it away in an envelope, and do this everyday for one year, you will have a tidy sum of $1,095 dollars at the end of the year.  Then you invest that money in the stock market through mutual funds by opening a Roth individual retirement account, or IRA, that allows your money to grow tax-free. I know the words stock market can make people uneasy, but many experts agree that even though the market will fluctuate,  these funds could give you a higher return rate than a bank savings account over a 20-year period  And with Vanguard’s STAR Fund or Schwab’s Total Stock Market Index Fund, you can start with $1,000, and both charge low fees.

According to Redbook’s money expert, Beth Kobliner, if you start this plan when you are 35 and follow this plan until you turn 70, you’ll have $129,342, if you earned an average six-percent annual return. But no matter what your age is today, the important thing here is to start saving whatever you possibly can every day of the year. We all need a nest egg stashed somewhere, money that is saved by us, for us and us alone. . Having a sense of security when it comes to our financial futures is a wonderful thing. If you haven’t started your own savings stash yet, there is no time like the present!