Phillips and Blow PC - October 2020

We Coloradans are lucky to live in such a beautiful state. Websites like OutThereColorado.com, which has all sorts of great information about current events, beautiful scenery, and updates on which outdoor attractions are open and closed, highlight what we can enjoy in our state. However, sometimes updates on the website are more about what can happen if you don’t enjoy our state safely. Specifically, one update from a few months ago was about drownings. Many of us most likely know how to swim, and some of us are probably confident we could swim across a lake — depending on how large it was, of course. However, have you ever considered what could happen if you got out in the middle of the water and were suddenly too tired to swim to shore? What would happen then? One case this story highlighted was about an 18-year-old young adult who had been seen struggling about 60 yards (or around 180 feet) offshore. That doesn’t seem very far, right? But also imagine that you are extremely exhausted from swimming all day in the summer heat. When you finally decide to swim back, you realize you don’t have the energy to keep going. It took search teams six days to find this young man’s body. He was about 17 feet underwater. He was 18 years old and perfectly healthy, but he hadn’t been wearing a life vest. Honestly, I can’t say I would have put on a life vest when I was 18 years old, either. But this young man’s death was the 23rd drowning to occur in one of Colorado’s lakes or rivers, and one common factor in many of these deaths is they weren’t wearing life vests. Sure, we’re all a little stir-crazy right now, and safety measures like life vests might not always be “cool,” but as we find ways to get outside and enjoy the crisp autumn air, we need to keep safety at the top of our minds. Don’t ever assume you’ll be one of the ones who won’t get hurt or worse. When you’re outdoors, stay safe and stay healthy. Stay Safe and Healthy in Colorado's Outdoors Don’t Assume You’ll Never Get Hurt

How to Budget for and Maximize Your Savings

While saving money is difficult for some and easy for others, we can all agree that doing what we can to put a little money aside can help us in the long term. Here are two ways you can get the most out of your savings.

OPEN A HIGH-YIELD SAVINGS ACCOUNT.

There are multiple ways to open a savings account, but which is the best? If you want the highest interest rates and low (or no) fees, a high-yield savings account is your best choice. The main difference between this kind of account and a traditional savings account is the annual interest rate. While some brick-and-mortar banks do offer high-yield accounts, many — and those with the highest interest rates — are offered through online-only banks. Why is it worth moving your money into a high-yield account? They offer interest rates that are 20–25 times higher than traditional savings accounts. Whereas a savings account at a traditional bank may offer a 0.01% interest rate, a high-yield savings account offers rates between 1%–2.2%. So, if you put $10,000 in a traditional savings account with a 0.01% interest rate, then you’d earn $1 at the end of one year. But if you put the same amount into a high- yield savings account with a compounding interest rate of 1%, you would earn around $135 in one year.

PAY YOURSELF FIRST.

Even if you have a great savings account with a high interest rate, it won’t do much good if it’s empty or not being added to regularly. Many people don’t think about their savings until after the bills have been paid each month. However, it’s actually better to save first! Contributing to your savings before you pay your bills or make other purchases will ensure you prioritize saving and maximize your great interest rate. As a bonus, when you put money into your savings first, then pay your bills, you’ll minimize the temptation to spend on unnecessary extras. To figure out how much to save each month, start by making a simple budget. Add up your monthly expenses, then see how much is left and how much of that you can put away. Make saving a priority by building this habit into your monthly routine, and you will rest easy knowing that you have a little extra tucked away for a rainy day.

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