Savings
Experts suggest you save 10% of your income. It's a good goal. But don't give up just because you can't save that much. Establishing a savings habit and saving consistently is better than putting aside a big sum just once. Start with something you know you can live with -- say, $25 a week. Promise yourself that you will save that much every Friday.
Decide how much you will take out each week and make it last. Make it a little tight. And try to decrease it over time if you can. If you have money left at the end of the week, put it into your savings account.
Contribute up to the amount of the company match, which is the amount your employer kicks in when you contribute. The most common match is 50 cents on the dollar. This gives you an immediate 50% return on your money.
You can arrange to have as little as $50 per month deducted from your account and deposited into a mutual fund account.
Do this only after you’ve maxed out your company’s retirement plan. You’ll probably come out best with a Roth IRA, which means you contribute after-tax dollars, but then get to withdraw it in retirement tax-free. If, however, you think you’re going to be in a lower tax bracket at retirement or you’ve already contributed significantly to a regular IRA, you may want to stick with the traditional version.
People who know where their money goes, spend far less and save more. Keep a little notebook with you to record your small cash purchases.
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