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To save or to invest? That is the question. Saving and investing should happen simultaneously to properly prepare for your financial future.

Here are 4 steps I would take to balance saving and investing for financial growth:

1) Auto-save for emergencies

Auto-save for emergencies in an online-only, bank account like Ally Bank. Your emergency fund should be slightly out of reach. Online only accounts take 2-5 business days to transfer money back to your regular account. This will eliminate impulse buying.

 

emergencyfund

2) Decide how much emergency money you need.

How much emergency money do you need?  3-months to 2-years depending on the industry you’re in and how long you think it would take you to replace your income should you lose your job.

 

3) Divert your funds

Once your emergency account is fully funded. Divert the money you were auto saving to that account to an investment account.

investmenting

4) Continue to pay down all debts.

Remember, as long as the interest you earn while investing is greater than the interest rates on your debts, you’re making money.

I hope these tips help you successfully save and invest in your financial future!

Ladies, need more help? Join 3,000+ other women that have signed- up for the LIVE RICHER Challenge. The LIVE RICHER Challenge is a FREE, online financial challenge created by The Budgetnista to help 10,000 women achieve 7-specific financial goals in 36 days.
Learn more and sign-up here: www.livericherchallenge.com
Live richer,
The Budgetnista
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