How to build a nest egg

You know you should save for a rainy day, but how? Here are some easy, low-risk ways to start.

You Will Need

* Priorities
* Sacrifice
* A savings account
* Safe investments
* A retirement account
* Fewer income-tax withholdings

Tips: If you must choose between funding a retirement account or your child’s college education, many financial planners advise picking the former. Your child can apply for grants and student loans, but you can’t rely on Social Security to be around when you’re ready to collect. If you usually get an income-tax refund, adjust your withholdings so that you get more money in your paycheck, and divert that cash to your savings. Otherwise, you’re lending the government your money interest-free for a year. When you invest in CDs or bonds, you can only withdraw money at certain pre-determined times. Otherwise you’ll face paying hefty penalties.