Saving money is often seen as something that’s only for very wealthy people. Working people, however, often can benefit even more from saving money wisely than wealthy people can! Saving doesn’t have to be hard, either: it’s as easy as you make it. Moreover, if money’s a bit tight, you’d be surprised at how a few smart investments can make your money stretch farther.
Here are some easy tips you can start to follow today to save money and make your money go farther. Remember: the right time to start saving is right now.
Craft a budget for yourself and figure out where your money is going. Unless you are literally living paycheck to paycheck, you should have a bit of money left over after paying your bills. If you don’t, you’re either living above your means or badly in need of a promotion or change of career. Otherwise, if you’ve got a few bucks leftover in the bank after your bills are paid, you should save some of them.
How much should you save? Well, that largely depends on your financial situation. If you’re only coming away from your bills with around $100 leftover, maybe throw $20 into a savings account.
As a general rule of thumb, many experts recommend trying to save twenty percent of your total income if you can. We find that, for some people, it’s easier to try to save twenty percent of their personal funds instead.
The simplest way to save is to open a savings account. This is an account that will slowly accrue a bit of interest over time. In this sense, it’s strictly better than putting cash in a jar and burying that jar in the backyard. However, if you’re looking for something a bit more in-depth, you could consider investing your money.
The safest of these investments is likely retirement savings, such as 401K accounts or Roth IRAs. These types of retirement accounts are taxed differently when their gains are used to fund your retirement. Of course, the trade-off is that they take a sizable tax hit if they’re cashed out before you hit retirement.
A more complex and potentially risky (or potentially rewarding) way to use your money is to invest it in the stock market. However, the complexities of investing in publicly-traded companies are a bit more confusing than some people would like to deal with. However, if you feel like you’ve got a knack for it and want to learn, there is serious money to be made investing in stocks.