Happy March from Your Employee Resource Advocate!
March means spring is almost here! It also means it is time to do our taxes. Tax season often times makes us reflect on our financial health from the past year. Did you have a good year financially? Do you want to earn or save more next year? Financial stability is not always easy to manage; it takes effort and practice. One way to improve our financial independence and stability is to save money.
Why Should I Save Money?
The main reason many people save money is because we cannot predict our future needs. We may have an emergency like a car repair, medical treatment or loss of a job. It is important to keep money set aside to help pay for these unexpected needs. Another reason people save money is to have fun in the future. Some people save to go on vacation, to buy a house or to pay for something they really want. Many people save money for retirement. What would you like to save for?
How Do I Save Money?
When thinking about saving money, it is important to first examine your current budget. What are you spending your money on? Where is your money going each month? Once you create a budget for your expenses, decide which purchases are “needs”, and which purchases are “wants” you could go without. Instead of spending money on the “wants” each month, you could set that money aside to be saved for future needs. You can save this money in a bank or in a safe location. There are many methods to help you save for what you need. If you would like some ideas on how to save money, please contact your Employee Resource Advocate!
If I Save Too Much, Will I Lose My Benefits?
“Resource limits” are often a barrier to saving money for those who receive Social Security benefits. Social Security has a limit of $2000 in assets before they begin to reduce or terminate your benefits. This does not allow you to save up much of a safety net. Do you know about ABLE Accounts? ABLE accounts are bank accounts that allow people with special needs to save money without jeopardizing their disability benefits. ABLE accounts come from the federal ABLE (Achieving a Better Life Experience) Act, but they are established and managed on a state level.
What can you buy with your ABLE account funds?
- Basic Living Expenses
- Housing
- Transportation
- Education
- Assistive Technology
- Employment Training
- Personal Support Services
- Legal Fees
- Health & Wellness
When you have money saved, you are prepared for unexpected expenses. This helps you become more financially independent and less stressed about money. If you would like more information about ABLE accounts or would like help setting up an account, contact your Employee Resource Advocate! You can also learn more about ABLE accounts at https://www.moable.com/.