1. Save money as early as possible
If it’s for retirement, college, or anything involving money, it’s always best to save as soon as you can. Don’t wait to start. The sooner you start, the more money you will have.
2. Have a 401k
A 401k is one of the best ways to save for retirement because of the tax deductions and tax-deferred growth on your savings.
3. Work a small job
This allows you to be socially engaged and keep your money growing.
4. Estimate how much you need
Do you have anything to pay off? Do you want to travel the world? Consider your future plans and save accordingly.
5. Manage your savings wisely
Don’t go crazy with your savings. Your savings are a sacred thing you worked so hard to build. Manage it smartly so that you pay the lowest tax rates on your withdrawals.
Facts from the U.S. Department of Labor:
- Fewer than half of Americans have calculated how much they need to save for retirement.
- In 2012, 30 percent of private industry workers with access to a defined contribution plan (such as a 401(k) plan) did not participate.
- The average American spends 20 years in retirement.
Saving for something is an extremely rewarding process. You get to watch your hard work grow. Saving matters!
The recommendations contained in this article are designed for informational purposes only. Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.