Saving For College
Save early and often: Start saving the day the baby is born, if not sooner, and save as often as you can. The sooner you start, the more you can take advantage of compounding interest and watching your savings grow. It will also help you get into the habit of saving regularly.

Establish a goal: If you specify a savings objective, you’ll be able to measure your progress toward that goal. Increase the amount you save each year: Increase the total amount you save each year by at least 5 percent. So if you save $100 a month this year, you should save at least $105 a month next year. This will help your savings keep up with the college tuition inflation rate. Remember to increase the amount of money you save, every time you recieve a pay increase.

For The Young Adult:
Purchase a water filter instead of bottled water — and cook your own food, you’ll spend less on ingredients than you would on eating out daily or weekly.

Lower incidental bills: if you’ve been with your cable or satellite provider for at least a year, you can request a lower rate.

Economical dating: Taking your beloved to a museum and a variety of venues that offer free live music is not only a good way to save money, it makes you seem suave and sophisticated.

For First-Time Homebuyers:
Aim for a 20 percent down payment: What’s the risk of putting down too little? If the home falls in value and you sell at a loss, you’ll owe more to the lender than you’ll receive from the buyer. You’ll also need extra money set aside on top of the down payment for closing costs, such as title insurance and mortgage fees.

Separate: Set up a separate account for your down-payment funds, so these dollars aren’t intermingled with other savings, and so you can keep track of how much you save. This should probably be a taxable account at a bank or brokerage firm.

Set a timeline: Your timeline for purchasing a home determines how best to invest your down-payment money. Those planning to buy in three years or less should put these funds in conservative investments such as short-term certificates of deposit or short-term bond mutual funds to shield themselves from potential market downturns. - todd williams

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