I was recently interviewed by Kathryn Sollman of 9livesforwomen.com, a great advice site for women professional and otherwise, to discuss the importance of saving money. I wanted to share this article with Savvy Aunties. One of the reasons I love 9 Lives for Women is that they cover the 9 lives of women beginning from post college, to saving in your mid 30's, to retirement planning for single ladies. These tips can support not only your financial goals, but those of your nieces just graduating from college.

Sometimes, the mere thought of managing financials and deciding when to spend and when to save can be overwhelming. But don’t forget, developing good habits, especially money-saving habits, always pays off in the end. So fear not Aunties! Here are three powerful tips for you, and to share with your nieces:
 
1. Make saving routine and painless. Set up automatic savings transferred from your checking account to a separate online savings account (for example, INGDIRECT.com or AmericanExpress.com). These banks pay higher interest rates than your local bank and are a bit harder to access (which is a good thing!). If the money is out of sight, it’s out of mind and harder to touch. There are no minimums and no fees. Even if you think you aren’t earning enough to save, start with a small amount–like $25 out of every paycheck. This will start your habit of “paying yourself” and building financial strength–a savings muscle you will flex your whole life!
 
2. Use technology to track your spending. Mint.com is a great way to view your monthly spending history—in various categories. Seeing where your money is spent—and how fast it can be spent on incidentals—is an eye opener. Once you see that you’re spending too much money on fancy coffee, try out an app such as Envelopes or YNAB to stick to a reasonable budget and practice smarter spending.
 
3. Sign up for the company 401k savings plan (if there is one) as soon as you land a job. This is another way to benefit from regular, automatic savings. Some employers even match your plan contribution, so make sure you contribute enough to take advantage of the match. When you’re asked to choose how you want to invest your 401k money, be sure to pick diversified mutual funds that include Large Cap, Small Cap, International and Bonds. If your employer doesn’t offer a 401k, open a ROTH IRA at a no-load mutual company such as Vanguard or Fidelity.??

You can find the full interview here.

Published: May 27, 2014