Donations Make us online
“You should automate everything you can about saving so that you don’t have to make a conscious decision to do it,” Lester said. “[If you don’t] you set up a conversation … with yourself about what you could be doing with that money, and often you lose because getting stuff is more fun than saving.”
Michael Finke, professor of wealth management at The American College of Financial Services, suggests setting up an automatic transfer to a high-yield savings account. For example, if you get paid at the end of the month, you can set up a transfer on the first day of the next month.
“Money in a checking account can be tempting to spend,” he said. “Making regular transfers to a high-yield savings account can help you build an emergency fund without feeling the pain of writing a check.”
Lester also recommends automatically transferring money to a retirement account. If you work for a company that offers a 401(k) plan, it’s ideal to sign up for the full employer match.
“Not taking advantage of a match is like leaving hundred-dollar bills on the ground,” Finke explained. “Even if you took it out after a year and paid a 10% penalty, you’d still come out way ahead.”
If you don’t have access to a 401(k) plan through work, you can set up an individual retirement account (IRA) and still have money automatically transferred, Lester explained.
5. Pay close attention to even small purchases on your credit card statements.
Source link
