The Parallel Economist (@theparalleleconomist)

We should be saving 20% of our income generally. But what do we “spend” our savings money on? 1. Basic Emergency Fund - save $1000 to $2000 in a regular bank savings account to ensure you can pay a medical or car maintenance bill. This is the top priority. 2. Debt principal - if you are in significant credit card or student debt, paying more than the minimum is definitely a form of savings. Have at least $1000 in your basic emergency fund first. 3. 3-6 month emergency fund. Have enough money to pay 3-6 months of expenses in an account that is uncomfortable but quick to get to. This can be a bank savings account, but it would be better in something that offers a better return, such as a money market account or (my favorite) an “infinite banking” cash value whole life insurance policy. 4. Retirement Funds - this can be anything from a 401k to something more exotic (which would require far too much room for this Gab post) Bottom Line: just start saving!