Preparing for the Storms

Are you saving money to help you through life’s storms? With the fragility of the workplace, the fickleness of the employers and even the restlessness of the employees, having steady, long term work is no longer the norm. My father, who was born in 1922 and lived through the depression, was told to get with a good company and stay there until you retire. Not bad advice for today, but usually, employees change jobs often. A Forbes article last summer stated that the average worker stayed at a job for 4.4 years with youngest employees about half that.

The economy is slowly healing. I am still very much worried about the national debt and its long term effects. But with fewer jobs and even fewer benefits available, I would strongly urge anyone with a job to save aside a little for life’s continued storms. Even if you don’t have a job but you have some type of income, even a little saved away is best.

At my own employer, we have had several restructuring in the last two years and a new one was just announced. I know professionals who have not worked at all or in their own field in over a year. This reminds me every day how fragile the workplace is.

Can you save? I hope so. Even a small amount like $50 per month will accumulate to $600 per year. This could be handy in an emergency, such as new tires or car repairs. Of course $100 a month would be better. Unscheduled repairs can be expensive.

If you are eligible, open a Roth IRA. There are several companies that allow you to open accounts with minimum deposits from $0 to $1000. Be careful when investing small amounts as your funds can be eaten up by transaction fees. Save until the investment move makes sense.

Even if you have a 401K or retirement plan through work, still save money aside for emergencies. The purpose of these funds is to help you weather the storms that life inevitably brews for us. It is better to be prepared. It is akin to buying extra water and canned goods when a severe weather event is coming your way.

Wishing you well and many blessings.

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