Hands Off The Long-Term Savings – Financial Literacy Saving Series

by Allacyn - Apr 21, 2011


If you are able to you should be putting aside money into savings. You should ideally be putting 60% of your total savings into a long-term savings account. This is used for your long-term goals like retirement.

In the book, Money: What Financial “Experts” Will Never Tell You, it talks about the prediction that in 2015, 77 million Americans will be over the age of 50 and only about 1/3 of those people will be financially secure enough to retire. That means 50 million of these individuals will not be able to retire. Have you started saving for your future, yet?

To be successful at saving for future goals it is important to make sure that the money is not easily accessible, this will cut down the temptation to pull money from this savings account and spend it. It would be a good idea to put money in an account like a 401(k) or Roth IRA.

Be sure to visit learnkey.com/financiallitmonth for your free Financial Literacy white papers and other resources, and you can also Like Us on Facebook and Follow Us on Twitter for more daily Financial Literacy tips.


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Emergency Savings – Financial Literacy Saving Series

by Allacyn - Apr 20, 2011


Building on the last two posts (found here and here), todays blog post is about emergency savings. It is important to set aside a percentage of your savings each month, ideally you should put aside 20% of your total savings toward your emergency fund. An emergency can have lasting damaging effects on you financially if you are caught unprepared. 

Emergency saving funds are very important, you never know what life will throw at you so it helps to be prepared. Any number of things can happen from illness, divorce, loss of job, or a car accident so it is important to be financially ready for it. In the book Money: What Financial “Experts” Will Never Tell You, the authors suggest thinking about this emergency savings as self insurance. You insure your car and your house so you should have emergency savings set aside for insurance when something unexpected happens.

It is suggested that you have 3-6 months of income set aside and if you can it is ideal to set aside one year of net income. This is you backup so that if something does happen you can weather it and continue to build your long-term savings. Without an emergency savings many people will use their retirement accounts to pay for unexpected emergencies and this can derail you from your long-term goals.

Be sure to visit learnkey.com/financiallitmonth for your free Financial Literacy white papers and other resources, and you can also Like Us on Facebook and Follow Us on Twitter for more daily Financial Literacy tips.


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Divide Your Savings Into Three Categories – Financial Literacy Saving Series

by Allacyn - Apr 19, 2011


If you haven’t already, read our previous post Paying Yourself First

So now that we are all saving 10% of our income each month we need to break it down into three categories. You should put aside 20% of your savings each month into an emergency savings fund. An additional 20% should be put into an account for emotional spending and 60% should go toward your long-term savings goals.

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Pay Yourself First – Financial Literacy Saving Series

by Allacyn - Apr 18, 2011


Pay Yourself First, I like the sound of that, but apparently in America we find this hard to do. Now, when I say “pay yourself first” I don’t mean go out and buy anything you want and then worry about paying your bills. I mean pay your savings accounts first before you pay your bills. The logic is that if you put your money into savings first you will actually put money in savings.

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Financial Literacy Debt Series: Quick Money Saving Ideas

by Allacyn - Apr 15, 2011


So yesterday the blog talked about tracking your spending so you can find places where you can save. Now today we are going to give you some ideas!

Take your lunch to work

This has been estimated to save you over one thousand dollars a year, why not do it. If you feel like this is depriving you, start with bringing lunch three days a week and work your way up to not eating out at all.

Eat at home

Instead of going out to a nice dinner for date night. Stay in, make it a competition to see who can make the cheapest dinner that you both enjoy, then cook it together. You will appreciate it more!

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Financial Literacy Debt Series: Track Your Spending To Pay Down Debt

by Allacyn - Apr 14, 2011


Track all of your spending for the month. This means tracking everything including your $1.00 per day vending machine habit, everything counts. This stuff all adds up! It is important that everyone in your family participate in this process and make sure that the tracking is as accurate as possible. Once you have completed this process it is time to analyze your expenditures and see where you can save some money. There are things we spend money on everyday that are not necessities and this is where you can pull from.

Find the things you can cut down on and maybe start out small so you don’t feel like you are being deprived. Then take this money and put it towards paying off your debt. A little bit of extra money going toward debt will go a long way.

For all of LearnKey’s Financial Literacy Month resources, visit learnkey.com/financiallitmonth


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Financial Literacy Debt Series: Get Informed

by Allacyn - Apr 13, 2011


Find out how annual interest rates, months remaining, monthly payments, and principal affect you every month. Make sure you find this information and use because not knowing could be costing you money. All of these terms are important to know for your financial well being.

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Financial Literacy Debt Series: “Power Down” Your Debt Method

by Allacyn - Apr 12, 2011


Use a systematic method to eliminate debt, pay one item first then apply that amount to the next obligation and so on. You should have already  prioritized your debt so that you know what payment to focus on first. Now you will want to focus on that first item on your list and apply any extra amount of money to that payment. When this payment is gone you will move on to the next payment and instead of spending the money you have extra from the first payment, you will apply that extra amount to the payment.

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Financial Literacy Debt Series: Prioritize Your Debt

by Allacyn - Apr 11, 2011


Prioritize your debt by either the shortest to longest maturity (shortest to longest debt period), smallest to largest debt or the highest to lowest interest rate. Don’t just apply extra money to your debt randomly, have a plan and make sure you stick to it. Most people, when they decide to create a plan to pay down debt, decide to go after the debt that has the highest interest rate or the debt that has the smallest balance, both of these are good options, but in many cases the debt with the shortest to longest maturity might save you the most money.

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Financial Literacy Credit Series: Building Your Credit with Credit Cards

by Allacyn - Apr 08, 2011


If you are planning on building your credit by using credit cards there are important things to remember. Always pay your credit card bills on time, if you can try to pay them off in full each month and never go over the limits on your cards. Another great tip is to never put more than 20% of your monthly income on credit cards this will keep your debt to income ratio down and keep paying them of manageable.

If you have an emergency and you have to put stuff on your cards make sure to keep the balance of each card at less than 30% and never go over 50% of the cards balance this keeps your debt to credit ratio down, so you don’t put negative marks on your credit.

For all of LearnKey’s Financial Literacy Month resources, visit learnkey.com/financiallitmonth


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