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When you are considering a personal loan in Grandview think about your savings at Community Bank of Raymore! In the world of personal finance, there is a lot of discussion and disagreement about how much money should be saved. Actually, there isn't a single dollar amount that works for everyone because it all depends on your circumstances, objectives, spending limit, and income in the end. Having said that, let's examine some broad recommendations regarding the amount of money you ought to set aside at various points in your life.

The Rule of 50/30/20

Senator Elizabeth Warren and her daughter's book, The 50/30/20 Rule, is a well-liked response to the question of "how much to save." To put it simply, you allocate 50% of your monthly income toward necessities. You then set aside 20% for savings and 30% for non-essential spending. While setting aside 20% of your income is a good place to start, there are more factors to consider before you arrive at the best solution so you don’t have to get a personal loan in Grandview. 

Putting money aside for emergencies
In general, you should have three to six months' worth of essential expenses in your emergency fund. In light of this, it's critical to first determine the entire cost of your regular monthly expenses. These consist of expenses for things like utilities, insurance, food, rent, and other bills.

Assume the total cost of these needs is $2853,00. That implies that $8,559—three months' worth of expenses—would be the absolute minimum amount you should have saved. Your ideal amount of money would be $17,118, or six months' worth of expenses. For added peace of mind, some experts even suggest setting aside up to nine months' worth of essential spending or consider a personal loan in Grandview. This may be a wise decision given that it may take longer than six months to recover financially from some unfavorable life events, such as losing one's job.

Retirement Savings
Retirement savings should not be disregarded, even though they are a longer-term objective than your emergency fund. Generally speaking, you should save between 10% and 15% of your income for retirement.

If your employer offers a match, this becomes simpler. For example, if you save 5% of your income and your employer matches 5% of it, your savings rate will increase to 10%. On the other hand, your retirement plan may need to be more aggressive if you intend to retire early. Some people even save 50% or more of their monthly income, to give you an idea. Some people take out a personal loan in Grandview to have all their expenses in one place.

Putting Money Down for Your Children
It might be a good idea for parents to consider how much money to leave their children. This can be a savings account, trust fund, or college fund that helps ensure your children have a better future. Consider a college fund, for example.

The annual cost of attending college for full-time students in 2020 was estimated by the College Board to be between $18,550 and $54,880. Therefore, the monthly amount you set aside for your children's education will vary depending on the kind of school, when you start saving, and your desired level of financial security for them.

Setting aside money for a major project
Saving for a significant purchase or expense, such as a wedding, a home, or a once-in-a-lifetime vacation, may also be part of your financial objectives. It can be difficult to determine how much you should save in this situation because you must first consider your disposable income. Next, you must take your goal's ETA into account. For example, when would you like to pay for the wedding or purchase the house? It's just a matter of modifying your contributions or expectations after taking stock of your circumstances.

Savings Following a Windfall
Expenses usually increase in tandem with an increase in income. To reach your financial objectives more quickly, though, you should also consider increasing your savings rate significantly.

Depending on how quickly you want to reach your objectives, Steve Wendel, head of behavioral science at Morningstar, suggests that you only spend a portion of the raise. He uses the example of how a younger person can get away with saving only 40%, but someone who wants to retire in ten years can save up to 80% of their raise.

The Final Word
If there was a hard and fast guideline for saving amounts, life would be simpler. On the other hand, because your finances demand adaptable solutions that fit your circumstances, it's helpful to have some broad guidelines to start with even if you need a personal loan in Grandview. When developing your balance, hopefully the information above will steer you in the right direction.

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The inception of Community Bank of Raymore was not just a business venture, but a dream envisioned by a group at the Betterment Association meeting at the Raymore Elementary School in 1976. They saw the need for an independent, community-owned bank that would cater to the growing credit needs of the area, rather than being another establishment by an external financial entity. This dream materialized on May 15, 1979, when Community Bank of Raymore commenced operations, marking us as the first bank to be chartered in Cass County, Missouri in 45 years.

Community Bank of Raymore is proud to offer free Kasasa® checking that pays you to bank with us. We also provide convenient services that make it easier to maintain your business checking account in Grandview, such as mobile banking and more! We provide the tools to let you manage your money on your terms.

With branches in Harrisonville, Raymore, and Peculiar, our full-service community bank offers world-class products and superior services for auto loans in Grandview, personal loans in Grandview, and business loans in Grandview.

Keeping pace with evolving technology, we constantly upgrade our services. Our online banking services include features such as mobile wallets, mobile deposit, bill payment capture, person-to-person payments, and the ability to open bank accounts online. This forward-thinking approach is what makes us a great option for commercial real estate loans in Grandview.

If you're interested in opening an online bank account today, click here or visit one of our branches or contact a friendly personal banking representative to learn more about our no fee, cash-back accounts and complete line of banking services including a home equity line of credit in Grandview.