The money you’re making should do more than pay your bills and provide for some fun.
If you want to get ahead and have not only stability but also flexibility, you need to be saving your money.
Start Saving Now
No matter what age you are or what salary you make, start savings NOW.
A savings gives you so much freedom BEFORE it’s time to retire. You can have more options when you have more money saved to wind your career down earlier, or change your entire career to a new adventure. Most of all, you’re creating financial security, and that will give you confidence.
The majority of people have this false belief that they don’t make enough money to be able to save, and what I want to offer you is a different perspective: You can start saving right now, no matter where you are financially.
Small, consistent action makes a big impact. For instance, look at this chart (Click Here) that shows you how easy it is to save $1,000 in one year.
But saving isn’t just about putting money aside into a savings account. Check out my best tips for making your paycheck work harder for you.
My Top 5 Tips for Smart Saving
1.Contribute the max amount allowed to your 401k savings from the first year you start working. The company “match” portion is FREE money. If there is not a 401k option available to you, then max out a Roth IRA. The key is to max out, meaning contribute the maximum dollar amount that the government allows each year to your retirement fund.
2.Get a financial advisor early in life. Meet with them 2-4 times a year to understand your investments, savings plan and the economic outlook, as well as the indicators for your money growing.
3.Make a monthly budget and stick to it. The best way to stick to it is to track your spending in an app or spreadsheet.
4.Save some after-tax money each month. I promise you won’t even notice the money is missing if you have it removed from your paycheck into a savings account before you get your paycheck. Do it even if you can only save $50/ month. You can set up an automated transfer with your bank so you don’t even have to think about it.
5.Do the Flexible Spending (FSA) plan for medical expenses if your company offers it. Put enough in there to help with your medical insurance deductible and some doctors visits. I would say minimum $500 / year.
These savings tips are a no brainer! You can choose just one action from the list above and get started. Doing one thing is better than doing nothing. Even if you’re not setting aside a lot at the beginning, you’re building the habit of saving. Saving now means you’ll have more options later in your career—believe me!
If you want more strategies on how to get the most out of your career, contact me for a free mini coaching session.[click here to get free mini-session]
Image by Jimi Filipovski, Unsplash