Saving

One of the most important steps to becoming a good money saver, and eventually an investor, is that you have to be willing to live below your means. Humans struggle with delaying gratification today for a potentially larger reward in the future—but that's what saving and investing is all about.

Start Saving

Saving money for retirement, vacations, or for anything unexpected can feel like a lofty goal. Each larger goal needs to start out with one or two smaller, more reasonable steps or mini goals. We recommend these three steps to help get started on your money saving journey:

Assess your situation: Once you have made your budget and have an idea where you are spending money, you can probably identify one or two areas where you can cut back. Can you call the cable company or your Internet provider to negotiate a better rate? Are you buying brand names when you might be able to switch to generics?
Set achievable goals: Instead of focusing on all those big picture goals, like buying a house or paying off your student loans, start with a smaller promise to yourself- like putting aside $50 per month or paying a little extra toward your credit card. As you hit these smaller goals it will give you a greater sense of confidence to help work toward financial security.
Emergency Fund: We hear a lot of about needing to have 3-6 months saved in short-term savings that we can access when needed (loss of job, healthcare expenses, unexpected household expenses, etc.) – but how do we even begin to save that if living on a tight budget? If you don’t feel you have anything to save, even setting aside 5% is a great accomplishment. Take the first step by just saving something. This might be $5 or $10 a week, or it might be a couple hundred dollars a month. Just start where you can. Then, once you're comfortable with your initial amount, see if you can start to put aside a little more. Your emergency fund has to be on hand when you need it so it should not be invested in anything. If you don’t separate it from your checking account, the temptation to spend it may be too great. Consider saving at some other institution, such as a credit union or Fidelity. Fidelity has a Goal Booster tool that can help you get started. Call 800-343-0860 for more information. Another way to make saving even easier is to have a portion of each paycheck go directly into your emergency saving account. Learn how to do this here, on the Caregiver Service Portal.
Intent on Investing: Once you have decided to take the next step in your financial future by investing, you will want to decide what type of an investor you will be. Some people prefer to partner with a knowledgeable professional to help monitor and adjust their investing strategy. Some people are do-it-yourselfers, who enjoy taking the time to monitor and manage investments on their own. It doesn't matter if you are a beginner or have been investing for many years, you should always be asking questions. There aren’t any dumb questions when it comes to how you are investing your money. Try not to feel intimidated – after all it's your money at stake. A good broker or investment adviser will welcome your questions, no matter how basic. Not sure where to start? Fidelity can help! And it's free. Call a Fidelity Workplace Financial Consultant at 800-642-7131.

Actions:

1. Watch these videos:

2. To learn more about investing and how you can take the next step, explore the financial resources available through Fidelity.

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