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,†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,†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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