SmartyPig

One CNN Money reader recently asked: “I’m 31 years old. Is there a benchmark established to indicate where I should be financially at my age? What ratio should my investments be relative to income and how much I should be investing?” Just like childhood development, education, and road trips, saving for your future is a journey. Along the way there are suggested benchmarks so that you might not run out of gas before reaching your destination.

Finance expert Charles Farrell encourages individuals to strive for these milestones: “By 35 you should have 1.4 times your pay tucked away. That ratio is 3.7 at 45, and 7.1 at 55.” Farrell also urges savers to not panic if you’re not quite on track. This basic strategy requires saving 12% to 15% of your income being saved and realizing there will be times you can save more. Savers can make up lost time by working a few more years (in regards to retirement) or living on 70% of their income for an extended period of time. Farrell doesn’t claim his method to be the end-all, be-all, but it does serve as a jumping off point for those of you curious to see where you stack up.

So where do you? We’d like to know. And also would be curious if SmartyPig is helping you get there more efficiently.

Wishing you successful saving.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com

Many financial experts think that when it comes to saving 10 is the magic number – 10 percent of your income that is. And while some Americans think that number to be a lot, it’s recently being thought to be not enough. In fact, “the average savings rate really should be 16 to 20 percent of household income… not 10 percent,” says John D. Buerger, Certified Financial Planner. “I believe true wealth is built out of cash flow management (not investment management.)” Having paid close attention to the successes and failures of various saving strategies, Buerger advises us on what works best for his clients.

It won’t surprise you that this finance guru emphasizes trimming the fat first and cutting unnecessary expenses and understanding the value of others. Buerger also highlights many expenses being a feeling of necessity when in actuality a mind shift of what’s a “need” and a “want” would significantly enhance your monthly savings. You’ll be spending less money on things that don’t matter anyway and watching your savings percentage grow by leaps and bounds at the same time. In the end, Buerger notes how much happier his clients are with this significant increase. It’s not just cutting back on cable or a dinner out, it’s a feeling of security, striving for a goal and a huge sense of accomplishment. And it’s what we at SmartyPig encourage each and every day.

We challenge you to cut a few extra expenses this week and donate to a new goal. Will you feel happier, more secure, accomplished? We bet you will!

Wishing you successful saving.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com

“You don’t have to use the registry,” states Peggy Post, author and director of the Emily Post institute. Most agree with Miss Manners herself. In fact, 49% of wedding gift givers offer cash or gift cards in lieu of the once traditional cookware, china and linens. And many couples are bypassing the gift registry all together and suggesting gifts of money towards a new or first home, future children and funds for the honeymoon or wedding itself.

The average ages of brides and grooms have increased  to 26 and 28, leaving many couples with most home necessities already. Not to mention, many of these couples are already living together, working towards larger goals like the ones mentioned above. They see little use for new towels, while money towards home improvement funds or travel opportunities would be most useful.

This is where SmartyPig comes in.

Does your favorite couple have a goal set up to fund their future dreams? If so, now is the time to donate. If not, why not help them get started with a SmartyPig gift card? And if you’re still not sure, check out wedding saver, Steffany who’s funded her wedding from start to finish with SmartyPig.

Wishing you successful saving and happy gifting!

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com

A SmartyPig guest post from Logan and Brianna Pribbeno, travelers and writers at www.PanAmNotes.com

After graduating college and moving to San Francisco, saving money was not high on our list of priorities. Comfortably situated in our first full-time professional jobs, we thought good finances meant big paychecks. With a misguided “everyone else is doing it” attitude, credit card debt quickly became the norm for both of us. A few years later we came up with a big idea and suddenly we needed to sort out our finances to make it happen.

We decided we needed a big change, we wanted to break the cycle and build a closer relationship with the passions we often swept into the margins of our busy lives. We decided to drive from San Francisco to southern Argentina on the Pan American Highway. At first, the concept seemed daunting, particularly the financial aspect.

Enter SmartyPig.

SmartyPig helped us break down the big picture into attainable goals. From paying off credit card debt to organizing finances for events preceding our  departure, we suddenly had a clearer view of where our money was going.  When saving 40% of our take-home income, expenses that had previously gone unnoticed were now big ticket items. Our South America goal was the major priority, but additionally we now had a multitude of savings goals for weddings, birthdays, and flights home for holidays. SmartyPig allowed  us to more closely examine those aspects of our life we might otherwise have failed to notice.

We formulated a plan and set out to hit our goal in 16 months. A few months prior to this we were spending frivolously, but with SmartyPig’s automated process we were quickly transformed into super savers. By the time we pointed our truck South we had managed to save 110% of our original goal. We never thought intensive saving could be so simple, not only simple but eye opening as well. In place of constant amusement, we found ourselves consciously spending and aligning priorities. This practice spilled over from our SmartyPig goals to all aspects of our life.

The savings lifestyle is not exclusive to globetrotters. Saving eliminates the financial excuse from doing exactly what you want to do in life. With a funded savings account, your dreams become move vivid. Maybe you don’t know what you’re saving for yet but once you have the nest egg to jump off with, taking the leap is far less frightening.

Currently we are in Southern Ecuador and plan to continue traveling the Pan American through March 2012. But our relationship with SmartyPig didn’t end when we began the journey back in January 2011. We currently have savings goals for the inevitable emergency, a luxurious honeymoon weekend, and a nest egg for our return to the states. Our original plan had us on the road for only nine months but our success with SmartyPig extended our journey to 15 months.  Upon our return home we will have a new SmartyPig goal to help finance the next adventure: Africa Overland.

Traveling this 4^th of July weekend? Better book those tickets fast. “Airfares for the holiday weekend have held steady for most of June, but they are expected to jump 10% by end of week.” As if the 7% increase over last year’s airfare and 9% increase in hotel accommodations weren’t already putting your summer vacation plans on the backburner, this extra wallop just may. But don’t put those suitcases away quite yet…

Genevieve Shaw Brown, editorial director at Travelocity says that while prices are generally up, “many hotels are offering special deals and packages to help cut costs significantly” – such as free nights, room upgrades, spa treatments and complimentary breakfasts for travelers to take advantage of. “You’re saving money you would otherwise be spending,” she writes. And SmartyPig can help stretch those dollars even further.

When you cash out your SmartyPig goal to a Travelocity gift card you’re automatically receiving up to 10% cash back. That’s on top of  what Travelocity is already offering. Pretty great deal, right? At SmartyPig it’s deals on top of deals, and always non-stop saving, so pack your bags today!

Wishing you successful saving.

Sarah Foss, SmartyPig’s Media Mad Woman
SFoss@SmartyPig.com