Everyone needs to save money, however many people are not. The 2014 Retirement Confidence Survey from the Employee Benefits Research Institute found that 36% of Americans have saved less than $1,000. What could be even more concerning is another survey from American Express which found that 29% of Americans keep their savings at home in the form of cash in hidden places.
Stashing your savings at home in hidden places can cause a number of problems:
1. It can be stolen. Thieves look under your mattress and in coffee cans.
2. You can forget where you put it (ever put something away in a 'safe place' and forget where it is? I certainly have).
3. A fire could be started in your home and your money would be burned.
Ask yourself what you're saving for. The answer will dictate where best to put your money. If it is for retirement a long-term investment strategy in a retirement account may be ideal. If it is for something within a few years a conservative approach in a savings account, money market fund or short-term bonds may be best.
The Merriam-Webster dictionary defines saving as the 'preservation from danger or destruction'. If you haven't already--start saving, if you already are--continue what you're doing. Preserve yourself from financial destruction.
Saving is essential, but don't just save--save, wisely.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).