HAVE you considered setting aside money for a nest egg for your children? It makes for a welcome graduation gift, as the cash will come in handy as they embark on a life of independence after graduation.

It could go towards a car or apartment of their own; a new, corporate wardrobe for their first real job; or a high-end computer.

One can save money for a nest egg through investment, the money market or an ordinary savings account. A certain amount should be set aside every month and, as with real eggs, the money should be left alone “to grow quietly in the background until it is needed.” To speed up the growth of your money, look into putting it into other types of investments. You also need to make adjustments in other areas in order to better manage your finances:

• Start by increasing your cash flow and paying off debts, especially credit card debt and other outstanding loans.
• After paying off your debts, you can focus on saving and building an emergency fund. Ideally, this should be the equivalent of six months of your monthly expenses; place this in a liquid account for easy access in case of emergency.
• Grow your assets and boost your long-term savings by contributing the maximum allowable amount to a copay pension plan.
• Ensure that you have adequate protection and income replacement for the breadwinner and for estate

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