Saving

Build the cushion that keeps a surprise bill from becoming debt.

2
Saving
11 lessons
Build the cushion that keeps a surprise bill from becoming debt.
Your cushion
Your first $1,000A head start plus a payday transfer.Emergency fundMonths of essentials, not months of salary.How much to save20% is the target. The order matters more.High-yield savingsInsured savings that pay more than checking.
Next level
Sinking fundsSave monthly for bills you know are coming.Save for a carDown payment plus fees, divided by months to go.Where to keep cashMatch each dollar to when you will need it.Certificates of depositA locked rate for money with a known date.Money market accountsInsured savings with checks, minimums and a variable rate.Treasury billsShort government loans, sold at a discount, state-tax free.I bondsInflation-linked savings bonds with a 1-year lock.