Where did the first three weeks of 2016 go? If you are like me, you are just now getting used to writing 2016 on letters and checks. Since it is still early in the year it seems like the perfect time to encourage putting some money away. A less than robust economy and daily news from the stock exchange makes everyone a bit cautious with their spending. When the family budget tightens savings may take a back seat. We often hear of people who are living pay check to pay check.  
Now, more than ever, it is a good idea to try to save some money. If you don’t already have one, consider starting a savings account. Even though interest rates are quite low, having a savings account is the first step to get in the habit of saving money. Once you are in the habit of saving, you can consider other investments. Look for the highest rate of interest at banks and credit unions. Save until there is enough money to have on hand for emergencies. Usually we recommend having 3-6 months living expenses saved in an emergency fund.
During a period of economic uncertainty, it is important to have several different investments. I have seen an illustration of an investment pyramid where the base emphasizes savings accounts, money markets, and CDs. While the interest is lower on these types of investments, the risk is also lower. As you move up the investment pyramid the rate of return may be larger on stocks, bonds and global investments. Of course, with that possibility of earning higher interest, there is a higher risk that some of your principal could be lost.
To force yourself to save, try paying yourself first. Write a check to your savings account before you pay your bills. Make a habit of this, and watch your savings grow. The key to sticking to your spending plan is making it simple and realistic. Try it. It’s easier than you think.  If you would like some information about money management please give me a call at 793-1910.
Donna Krug is the Family & Consumer Science Agent with K-State Research and Extension. You may reach her at: (620)793-1910 or dkrug@ksu.edu