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HELPFUL TIPS
BUILD
WEALTH, NOT DEBT THROUGH
AMERICA SAVES
Excerpts Courtesy of
FosterFolly News
Do you have all the
money you need? Will
you have enough money to
live comfortably in
retirement? Americans
love to spend, but hate
to pay. The average
family owes $9,000 in
credit card debt and is
paying $1,000 a year on
the interest alone.
Most Americans do not
have enough savings for
an emergency fund (which
should equal three to
six months of expenses
in easily-accessible
accounts). Only 53% of
today’s workers have
tried to estimate the
amount of money they
will need for
retirement.
That’s why February
24-March 2, 2008 has
been designated as
America Saves Week.
America Saves is a
national campaign that
encourages individuals
of all ages and income
levels to save money,
reduce debt, and build
wealth. America Saves’
goal is to encourage
individuals to save a
certain amount each
month toward a specific
goal – to buy a home or
a car, for example, or
to build an emergency
fund, or save for
retirement.
Individuals can sign to
join America Saves on
its website:
http://www.americasaves.org.
In doing so, they get a
subscription to the
quarterly American Saver
newsletter and access to
volunteer financial
planners recruited by
the Financial Planning
Association.
Saving even just a few
dollars per paycheck
adds up over time. The
“miracle” of compound
interest - earning
interest on your
interest – allows you to
reach your short-term
and long-term goals more
quickly.
An example: Save $50 a
month, with a 5% yield:
1 year:
$ 614
5 years: $
3,400
10 years: $
7,764
25 years:
$29,775
40 years:
$76,301
Total: $ 24,000
principal
$ 52,301 interest
The most important thing
to do is to pay yourself
first – whenever you get
a check, put some money
in your savings account
before doing anything
else. Consider making a
personal commitment to
use government payments
received this spring to
reduce high-cost debt
and increase savings.
Remember: Build Wealth,
Not Debt.
For more information on
family finances or the
America Saves program,
contact Judy Corbus,
University of Florida/IFAS
Extension Service in
Washington County, (850)
638-6265, or in Holmes
County, (850) 547-1108 (TDD,
1-800-955-8771), or at
JLCorbus@ufl.edu.
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