Whether you want to save for your children’s education, your own retirement, or want to know the tax savings you can get on your investments, use our savings calculators to plan better.
There are essentially two strategies for boosting savings and investments: Increase your income and cut your spending.
Whether you're a young adult ready to start saving for retirement, a 50-something ready to pay off your mortgage or a senior citizen living on a fixed income, these tips can help you build savings, reduce debt, boost income and invest smartly.
Save part of your monthly income as soon as you get it, rather setting aside whatever's left over. One way to do this is to set up automatic transfers from your bank account to a savings account or investment account.
An emergency savings account is the foundation of a sound financial plan. But what exactly is an emergency? A true emergency is something you have no control over and little choice about, such as a major illness or job loss.
Saving often starts with spending less. Whether it's a pricey hair salon, daily premium coffee or brand-new clothing at retail prices, most people can find things to trim from their budgets.
When you cut back on spending, don't leave the savings in your pocket, wallet or checking account, where you'll just spend the money on something else. Instead, make a payment that day on a debt or transfer the money to a savings account where it will be out of reach.
If dine out five nights a week or indulge other similar habits, resolve to substitute a stay-at-home-and-save habit for one or two of those days.
Paying off debt can be a great way to free up money that you can redirect to savings or investing. Make a list of your debts and pay off those with the highest interest rates or smallest balances first.
If you're unable to save any money for major purchases and long-term investments, you're living above your means. That calls for major adjustments, like trading in a new car for basic reliable transportation or moving to more affordable housing.
Some investments are relatively tame on the risk-reward scale while others are wilder. Generally speaking, younger people should invest more aggressively while older people should be more conservative.
If you're a novice investor, start with a basket of investments, perhaps in a mutual fund or assets you choose yourself. The goal should be to diversify without making your portfolio too complicated or too narrow.
A stock market dip can be a good buying opportunity for steady investors who want to add to their portfolio. Review your investment strategy once or twice a year, and don't let headlines throw you off track as you allocate your funds.
Last updated on 11-11-2020