Saving and investing isn’t hard, but to make it easy you need to treat it like a bill. When your paycheck comes in each month, you pay your bills, right? So treat investing like a bill. If you want to max out your Roth IRA, divide the maximum contribution by 12 and send that amount
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There are plenty of rich people who constantly worry about money. But, in general, if you save diligently you are going to eventually find yourself at a point where financial worries are relatively rare – you’ll find that you are in a state of financially happiness.
The feeling of being financially happy isn’t just for the wealthy. If
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Here are some steps you can take to protect your cash flow during tough times. It may be a job loss, or large and unexpected medical bills. Whatever the cause, it threatens your income stream or raises your expenses. You’ll need to take drastic measures to restore your cash flow as much as possible.
Eliminate Nonessential Spending
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There are loans to pay for a house, a car, or college tuition, but there are aren’t many ways to fund your retirement without saving. That’s why we believe that saving for retirement should generally be the top priority for Americans under 65. But even before that, we suggest setting aside three to six months of expenses
Continue reading Establish your Savings Priorities – Your Savings Hierarchy
Investing regularly can help lower the average cost of your purchases.
Investing a certain amount of money each month or quarter helps ensure you won’t pay for all your shares at market highs.
This strategy – known as dollar cost averaging – also reduces “emotion” from investing, helping investors avoid selling weak performers just prior to an
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It isn’t easy to save money, even for people making upward of $250,000. There’s no shortage of high-income earners who have relatively little net worth.
It’s not that they don’t save; many max out their 401(k) plans religiously. But socking away $15,500, or $20,500 if they’re eligible for catch-up contributions, annually isn’t going to provide for
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An automatic and regular savings program is more successful than a savings strategy that focuses on a long-term goal. A 2008 Rice University/Old Dominion study showed that people who focus on a long-term goal save less than people who save month-to-month or paycheck to paycheck.
Says Paul Dholakia, associate professor at Rice’s Jones Graduate School
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One of the big benefits of having a regular savings program is that you are “dollar-cost averaging”. What this means is that the average dollar cost for your stocks is lower because you buy more shares when the price is lower and fewer shares when the price is higher. You benefit from dollar-cost
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Make saving easier by automating it. It saves you time and it makes it less stressful. Automatic saving will also help to ensure that you will be a successful saver.
Talk to your bank about automatically transferring funds from your checking account to specific savings programs that you have in effect.
Savings programs may include
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Make saving a lifestyle choice and not simply something you do to meet a specific objective, such as college or retirement. You should try to have a savings program that allocates 10% of your after-tax income. This isn’t aligned with a purpose other than having saving be a part of your lifestyle –
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