Saving on a Budget

Part 2 of the 4 Part Blog Series:"Setting Up Your Children for Success"

By W. Joseph Irish, CPA/PFS

In our last blog, we made mention of the value of saving early. In this entry our goal is to help you get your family past the hurdle of "I cannot afford to invest right now."

Many families feel that they just cannot afford to start saving for retirement right now due to the cost of raising children, cost of debt, etc. But how many families have a family budget?

Create a budget of your annual income and expenses to determine where it is your household income is being spent each week, month, year. This will allow you to identify areas where maybe there is money being spent which could potentially be cut be in order to allow for investing.

Another benefit of starting a family budget is teaching your children the importance of budgeting and saving.  By watching and learning from you they will learn the importance of money management.

The next time you get that well earned raise, sign up to put half of it in your 401K at work or increase your current contribution. You will more than likely learn that out of sight will equal out of mind. Check with your plan sponsor but odds are if for some reason the deduction is more than you can handle you can back it down at any time.


* Results assume a 6.75% annual rate of return.


You can see in this graph if you can figure out a way to save $10 per week in a 401K plan that will match that same $10 per week (or $20 per week on your own) it starts to add up over time.

Things that cost $10:

  • One Lunch
  • One Movie Ticket and Soda
  • iPhone Apps/iTunes Download
  • Starbucks
  • Gym Membership (if you already gave up your New Year's Resolution)

Be as creative as you can to get started.  You will be glad that you did.

Part 3 - The True Cost of Carrying Debt

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W. Joseph Irish earned a bachelor’s degree in business administration from Western Michigan University with a major in accounting and is a Certified Public Accountant (CPA) and holds a Personal Financial Specialist (PFS) designation from the American Institute of Certified Public Accountants (AICPA). Prior to joining Siena, Joe spent 15 years as Chief Financial Officer and 9 years as shareholder at a successful logistics firm that specializes in rail transportation logistics.