When my husband and I got married, we were young, but we were always thinking about saving money. My husband had $25 taken out of every paycheck for his employer to buy him savings bonds. (Back then, $25 was about 15 percent of our rent.) I started setting aside similar sums of money into savings, as my jobs didn’t buy savings bonds.
When we got divorced, there was a nice pool of bonds and cash to split. In fact, there was enough to cover my college tuition for the next two years.
So, should you be investing in U.S. savings bonds? Oh yes!
Actually, it’s a little more complicated than that. But, let’s start with “yes” as the premise.
The pros of savings bonds:
The cons of savings bonds:
Any habit that has you socking away a fixed amount of money that you cannot touch is a good habit. Be realistic with yourself. How much can you handle not wasting on impulse buys each week? Multiply that amount by four. That’s how much you can afford to put into savings of one sort or another.
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Eva Rosenberg, EA is the publisher of TaxMama.com , where your tax questions are answered. Eva is the author of several books and ebooks, including the new edition of Small Business Taxes Made Easy. Eva teaches a tax pro course at IRSExams.com and tax courses you might enjoy at http://www.cpelink.com/teamtaxmama.
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