Farm Raised Family | Financial Planning Series – Article 6
Saving for the Future – Saving money isn’t just about building wealth—it’s about building security. Whether you’re preparing for an unexpected vet bill, dreaming of a family vacation, or planning to retire on your front porch with your boots on, a good savings plan gives you options.
But for many families, especially those living with variable farm income, saving can feel like a luxury. That’s why it’s important to break it down into practical steps that fit your real life.
Saving for the Future – Why Saving Matters
- Gives you breathing room in emergencies
- Reduces dependence on credit cards or loans
- Builds toward long-term dreams (home, land, retirement, kids’ futures)
- Teaches your children valuable financial habits
Saving for the Future – The Three Buckets of Savings
Think of your savings like three separate baskets, each with a different purpose.
1. Emergency Fund (Short-Term Security)
Goal: Cover 3–6 months of essential expenses
Use for: Job loss, medical emergencies, major home or vehicle repairs
Where to keep it: High-yield savings account, separate from your checking
Start small—$500 to $1,000 is a solid beginning. Then build over time.
2. Sinking Funds (Planned Expenses)
Goal: Prepare for known, irregular costs
Use for: Holidays, vet bills, kids’ sports, back-to-school, property taxes
Where to keep it: Separate savings accounts or labeled envelopes
These prevent surprise bills from wrecking your budget. Add a little each month.
3. Long-Term Savings & Retirement
Goal: Build wealth over time
Use for: Retirement, home ownership, college savings, major farm upgrades
Where to keep it: IRAs, 401(k)s, 529 Plans, or brokerage accounts
Don’t wait for “extra money.” Start with small, consistent contributions. Compound interest is your friend!
Saving for the Future – How Much Should You Save?
It depends on your goals, but here’s a general guide:
| Type of Saving | Ideal Target | Monthly Contribution Suggestion |
|---|---|---|
| Emergency Fund | 3–6 months of expenses | 5–10% of income |
| Sinking Funds | Varies by family/farm | Based on anticipated costs |
| Retirement | 15% of gross income | Start with what you can manage |
Even saving $25 a month is a great first step. The key is consistency.
Saving for the Future – Tips for Farm Families
- Use windfalls wisely: Apply tax returns or harvest profits to savings before spending.
- Automate it: Set up automatic transfers to savings accounts—even if it’s just $10/week.
- Use jars or labeled envelopes for tangible tracking if you’re a visual person.
- Save in the good seasons to carry you through leaner months.
Saving for the Future – Family Goal Planning
Want to save for something specific? Use a SMART goal:
- Specific – “We want to save $5,000 for a used farm truck.”
- Measurable – “We’ll save $200/month.”
- Achievable – “We’ll cut back on takeout and sell eggs to help.”
- Relevant – “It’ll support our family’s work and income.”
- Time-bound – “We’ll hit our goal in 25 months.”
Make it a family project with a visual tracker—get everyone involved and excited.
Saving for the Future – Final Thoughts
You don’t need a huge paycheck to start saving. You need a plan, a little creativity, and a whole lot of persistence. With these tools in hand, your family can weather storms and build toward the future—one dollar at a time.
Be sure to also check out The Fail-Proof Foundation: Why Every Family Needs Financial Planning
✍️ Up Next:
“Saving for a Home (Even If You’re Building on the Farm)”
We’ll talk about how to prepare financially for buying land, building a home, or taking that next big step toward planting roots.
We have multiple new series starting now to give you the best in information concerning financial matters for families. Join our community so that you never miss anything, plus get some great exclusive insight!
MORE WAYS TO CONNECT
We also, as a homesteading family, have a variety of blogs that might interest you. A Life on the Farm focuses on the more personal side of the homesteading life. We discuss subjects like family, parenting, relationships, homeschooling, cooking, canning and so much more.
Two Oaks Farm Talk concerns the more technical side of homesteading. We discuss subjects like gardening, food prep, and farm building and construction with lots of tutorials!
Farm Raised Family is basically a hub for everything under the Two Oaks Farmstead umbrella. You can learn a great deal about all parts of the farmstead there. The Farm Raised Family blog focuses on financial matters such as budgeting, saving, and more and on current events affecting families.
You can also have a more in depth look at all that we do by visiting our Two Oaks Farmstead YouTube Channel and be sure to subscribe so that you don’t miss a thing!
Farm Life and Freedom is the new podcast we are in the process of launching! It is going to be so much fun! You could also check in with our Farm Life and Freedom Youtube Channel.
Two Oaks Farmstead is the farm store… the one that holds the umbrella! Check us all out and join us, not only on our blogs and Farm Life and Freedom podcast but come join the fun on Facebook, Instagram, Twitter… wherever you get social!
