I am a house wife I have to save my hubby's small portion of his salary which is the better way of saving?

Answer 1

Do you have an emergency fund? Are you out of debt?

If you are out of debt- you need to start saving 3-6 months of expenses in a simple savings account for true emergencies (car breaks down, furnace goes out, etc NOT a leather couch or vacation.) Call it your "emergency fund." After you have the emergency fund, start saving for a house (if you don't have one). If you do, then put money aside for college and 15% of the income into retirement funds.

If you are not out of debt, you need to start with $1000 baby emergency fund and then pay off the debt then do the 3-6 month emergency fund, then college & retirement.

I suggest you and your husband read: The Total Money Makeover by Ramsey. His book will give you the complete game plan and depending on your financial situation where you should be saving money.