Savings and Investments

One of the staples in a budget should be your contributions to savings and investment. To start, you should have an emergency fund that can be used for any unforeseen expenses, like a trip to the ER.

Next, you should also be saving toward retirement, in a workplace-sponsored plan, like a 401(k) or an IRA. Many parents also choose to save for their child’s college expenses in a 529 plan.

You can also save for short-term goals, like a vacation or home renovation, or a longer-term goal, like buying a new car.