29/01/2023
You Have to Cut Spending to Save
You’ll find plenty of politicians who claim the only way to save is to cut. There is a grain of truth in that. When it comes to your own household budget, you have to live within your means in order to have the money to set aside for savings. That could mean cutting your daily trip to Starbucks to once or twice a week instead. Perhaps you can eat in more to bring down your monthly food costs. The little sacrifices you make today can result in a big benefit down the road when you really need to use those savings.
You Should Take Advantage of Employment Matching
If you happen to work for a company that matches your 401(k) savings, then it is in your best interest to funnel as much money into that account as possible. You’re basically going to get a bunch of free money from your company. That could translate into thousands of extra dollars each year. Are you really going to leave that kind of money on the table?
You Can Save and Earn
The employee matching of your retirement savings is a way to earn with that money. There are other options as well, such as money market accounts or certificates of deposit. With these types of saving accounts, you’re still putting your money aside but you’re locking it down and letting it earn interest. You’ll find that most of these savings accounts can provide better rates than the plain bank savings account.
