American Consequences - October 2017

income or increasing your investment returns. That’s because it’s a double effect... you increase what you have to invest, while decreasing what you spend. You also learn how to live longer on less money. Think of savings as a gift from your present self to your future self. Think of savings as “paying in once, getting paid out forever.” 1. SET UP DIRECT DEPOSIT FOR YOUR PAYCHECKS. A recent study shows that those who have a portion of their earnings directly deposited into a savings account automatically save about $450 a month, much more than the average. Try it. Start with $50, then go to $75 in a couple of months, then to $100, and so on. 2. BOOST YOUR 401(K) CONTRIBUTION. Often, your employer may match contributions that you make to your 401(k) up to a certain level. If there’s one financial decision that absolutely every single person needs to make, it’s this... Always contribute to your 401(k) to earn the maximum employer contribution. Skipping out on that free money is the most senseless mistake in personal finance. And if you ever receive a raise, put the extra money into your 401(k) up to the maximum amount ($18,000 in 2017). At my company, I make an instant 50% on the first 6% I save because the company matches. It’s the best investment I make every year. Here are a few simple tricks to get you started saving more...

It means these government promises will not stay around forever... THE ONLY PERSON LEFT TO TAKE CARE


American Consequences | 65

Made with FlippingBook Online document