Make a Savings Plan Your First Interest
Labels:
investments,
retirement,
savings
It's easy to put off your savings plan for retirement or anything else for that matter. If you have any interest in becoming more financially secure for the future, it will take time and good savings habits. Put off saving too long and you may have to work longer before you can afford to retire, or lower your standard of living in retirement. The sooner you start and the more you save, the better your retirement can be. Here are some tips that can help.
Contribute to your employer’s retirement plan. Participating in your employer’s retirement plan is one of the best and most convenient ways to save for your future, plus it offers benefits you can enjoy today such as lowering your taxable income along with receiving free money in the way of matching contributions from your employer.
Increase the amount you’re saving whenever you can. Small increases can make a big difference over time. Whenever you receive a pay raise or a bonus, make sure to increase your contribution rate. A little extra today can add up to a substantial amount in the future with the power of compound interest.
Diversify your investments. Investing in different types of investments, including stocks, bonds, and money market options, can help lower the overall risk of your portfolio. It’s important to invest a portion of your savings in stocks, which have historically provided returns that outpace inflation. Diversification does not ensure a profit or protect you against loss in declining markets.
Don’t borrow from your retirement savings. Loans allow you to use the savings in your plan account before you retire without tax penalty. While it may be tempting to borrow from your account, loans may reduce the long term growth potential of your portfolio. In addition, you may be tempted to reduce your plan contributions to repay your loan.
You may not be planning to retire until age 67, but that doesn’t mean you should put off saving. If you start early, you can save less than you’ll have to if you wait 10 years. The choice to make a savings plan your first interest is yours.
Manage Your Personal Consumer Debt
Labels:
debt,
personal debt
Almost everyone has or will have some form of personal consumer debt to manage. Borrowing money can be a good thing. For example, it could allow you to purchase items like a new home when you don’t have the cash in hand. It can also be bad, like when you borrow more than you can afford to pay back. But if you follow the simple rules outlined below, you can manage your debt wisely, leaving you money to save and invest for the future.
- Establish a good credit history. Pay your bills in full and on time. A good payment history could lead to easier access to credit when you really need it and could also make you eligible for more attractive interest rates.
- Borrow wisely. Don’t take on more debt that you can afford and beware of shady lenders and aggressive salespeople. If a deal sounds too good to be true, it probably is.
- Work with your creditors If you get behind. Call the people you owe money to and try to work out a reasonable repayment plan within your means. Since collecting on unpaid debts can be costly and time consuming, many creditors are willing to work with you. Get help if you need it. Credit counseling services can help get your bills under control.
- Pay higher interest debt first. Try to pay down the debt that is costing you the most. Tackle the higher interest debt first and then move on to the one with the next highest interest rate.
- Check your credit on a regular basis. Mistakes happen. Identities are stolen. One way to protect yourself from these pitfalls is to check your credit report regularly to make sure it’s accurate. Free credit reports are available on an annual basis from the main credit reporting agencies. It’s easy and could alert you to problems before they get out of hand.
Manage your personal consumer debt. Don't let it manage you!
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