Last Thursday night I was watching the 6:00 pm Fox News and I have to admit that they had some interesting savings tips that I wanted to share.
Savings Tip #1
Fox News said that if students want to save money after college it is definitely an acceptable practice to move back in with our parents after we graduate. After my first year in university I took a year off and moved back in with my Dad in an effort to save money. I worked two jobs for one and a half years, and I saved up enough money to move out on my own and not have to live pay check to pay check while attending university.
Fox News said that 85% of young adults move back in with their parents after college. However, they also said that the option to move back home with our parents after college is not a standing order. By 28 years old we should be on our own and out of our parent’s house permanently. I moved out when I was 18 years old, I went back to my Dad’s house when I was 19, and I moved out again when I was 20 years old, I have been on my own ever since.
Savings Tip #2
Fox News suggests that we always save 10% of our pay check. Whether it is 10% of our gross pay check or net pay check is not important, what is important is the habit of always continuously saving. Saving at least 10% of our pay check is a habit that should be installed in our financial belief system at a very young age. Parents should ensure that their children are always saving at least 10% of their pay check from their first job, their part time job, or their summer job.
This is a habit in which I usually disagree with because there is no point in saving if we aren’t paying our bills on time. Very often is the case that people put money in their savings accounts and before they receive their next pay check the money is right back in their checking account. A good financial habit is to save a little more and spend a little less.
Fox News said that it is a good idea to save at least 10% of our pay check, regardless of our expenses, because we are always going to be paying off some form of debt. Whether we are paying off our student loans, our mortgage, or making monthly payments on our credit cards, we are always paying off something. Fox News said that we should always save 10% of our pay check because if we were waiting to have no expenses or monthly bills we would be waiting forever.
Fox News also stressed the importance of investing in our 401K. They also noted that we shouldn’t stress too much about the current expensive price of gas. Fox News notes that gas prices should be lower by midsummer. That is something I am sure we are all looking forward to!
Photo by Digital Primate