You’re saving for your golden years
Saving money for retirement is something we’re all supposed to start doing as early as possible. But there’s a catch. “When you are early in your career, don’t think about setting aside money today as for your retirement. Instead, think about it as creating financial security for you to do what you want in the future,” advises professor Jamie Hopkins, retirement income program director at The American College of Financial Services.
So, there you have it. Saving money is still as important as ever when it comes to securing a comfortable future, but the real focus should be on creating long-term income to be able to do the things we want. “Sometimes this is investing in yourself or other assets that generate income, such as buying stocks or a rental property,” says Hopkins. Here’s how you can save more money monthly!
You take care of the smallest accounts first
Paying off those bothersome small accounts might give you a feeling of satisfaction and accomplishment, but can it really help you cover your debt? “In reality, you are still likely making the wrong choice by increasing your debt. Instead, focus on the highest interest rate debt first,” warns Hopkins. For instance, paying $600 towards a $3,000 credit card bill with a 19 percent interest rate will save you far more than paying off a $600 bill with a 6 percent interest rate. Think big and expect even bigger results!
