Retirement can be a word that many people work tirelessly to achieve, but in REALITY may find themselves on the short end of the rope.
We thought we would chime in on this topic and share a few helpful tips.
Tip 1: If your company has a retirement savings plan (401k or 403b), INVEST! There is an added bonus if the company matches a portion of your contributions. Who doesn’t love free money?! Your benefits department should have more info to get you on track!
Tip 2: It is a good rule of thumb to have between 3-6 months of your monthly bills set aside in a liquid saving account. What is a liquid account? It is an account that you have easy access to without having to wait so many days to receive your money (Ex: a savings with your local bank). A good way to begin to set this money aside is to set up an automatic transfer from your checking to your savings every month.
Tip 3: Give yourself a weekly allowance, and save the rest! Calculate, on average, how much you spend on daily expenses in a given month. Divide that number by 4, and you will have your weekly allowance amount. If you had went on a MAJOR shopping spree one week…that would be excluded. If your shopping is a crazy habit…that is a topic for another day.
Tip 4: Keep money for bills in a SEPARATE checking account! By doing this, it helps to keep from spending money that you don’t truly have to spend.
Tip 5: Pay for daily expenses with cash. If you break the habit of swiping the card (that always seems to have a limitless amount of cash at the time you make purchases) it will help to keep MORE money in the bank…furthering your financial growth. Try keeping your allowance (Tip #3) in cash, and once it is gone…it is gone!
Try putting some of these tips to use, and see if 2016 is the year for your financial growth. Happy Planning!