Funding Your Future - Cyprus CU Blog

What Should You Save For?

Written by Avery Mills | Dec 15, 2017 6:36:13 PM

We've talked a lot about the importance of having a savings account. However, if you're just putting away money with no purpose, it can be hard to prioritize saving. If you aren’t sure about what you should save for, here is a list of ideas to help you get started:

EMERGENCY SAVINGS 


It should be your goal to be prepared for an emergency. This could be getting a flat tire, losing your job, or an unexpected medical expense. Ideally, you should aim to have at least 6 to 12 months’ worth of expenses saved. Have this account somewhere where it's not easy to access, such as a different financial institution. This way, you can't pull out money unless you really need it.

RETIREMENT SAVINGS

When saving, it's important to take your future into consideration. Make sure that you are maximizing your contributions. For Traditional and Roth employer-sponsored 401(k)s, yearly contributions are capped at $18,500 per year for those under 50 and $24,500 for those over 50 in 2018. For Traditional and Roth Individual Retirement Accounts, the 2018 yearly cap is set at $5,500 for those under 50 with an additional $1,000 available to those over 50 for

VACATION SAVINGS

There's nothing better to reset your mind than a vacation. However, going on vacation should never cause you to go into debt. Every paycheck, set aside some money to go directly into your vacation savings and plan trips that will fit your budget.

COLLEGE FUNDS

College can be expensive, but the sooner you start saving, the less of a financial burden it can be. Open a savings account as soon as possible, even before your child is born, if possible. In the state of Utah, you can start a 529 Plan. This is a tax exempt account and doesn’t require a minimum balance, contribution requirement, or enrollment fee. You can also start a high interest savings account with Cyprus, such as a Dream CD. These accounts offer higher rates than regular savings accounts and you can continually add to it until your child starts school.