Her parents’ meticulous budgeting laid the groundwork for Aliche’s own commitment to saving. At the age of 25, she’d saved $40,000 to buy her first home. She roomed with one of her sisters, paid cash for a car, and saved one third of her $35,000 annual teacher’s salary for three years straight. Her successful saving habits earned her the moniker “budgetnista,â€ given to her by her little sister Lisa.
Aliche, author of The One Week Budget (Create Space; $14.99) and owner of CLD Financial Life, now has more than $22,000 in savings in her iGoBanking online savings account. Her savings strategy is incorporated into her overall financial plan. She saves at least 10% of her $55,000 annual income as a self-employed entrepreneur. She invests 10% in her SEP IRA with Lincoln Financial and still has $52,000 in her 403 (b) retirement account from her days as a teacher. She has $6,000 in the IRA.
“As soon as I receive any income, I immediately break it down into percentages and transfer the funds into their designated accounts,â€ says Aliche, now 33. According to George Barany, director of Young America Saves, the best saving strategy is to set a goal, develop a plan to reach it, and save automatically thereafter. Depending upon their income, young people should save at least 10% each pay period. If you can’t do that, save something–even if it’s $10 to $25 per paycheck. As you reach each savings goal, set the next one. Take advantage of direct deposit and have a set portion sent directly to your savings account.
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