Oh well, don’t be fooled by my title. I’m exaggerating, I just can’t come up with a title that’s not as exaggerated. While you and I know, there aren’t any tricks, there are ways to achieve financial stability. I’m just talking about easy money-management system that may actually work for. I found the key to this system and that is none other than : to save more money. You may ask though:”how can I save more, when in fact, I’m living from paycheck to paycheck?” I guarantee you, there’s a way to save money. One way is to have money automatically taken out of your paycheck. I don’t have a paycheck myself, but the husband does, and he has a substantial amount of deduction directly going to our bank account, and this is savings, not 401k. On my end, I do the same thing; only that I take a specific amount of money from my wallet every week that goes to my own savings account.
If you’re interested, here’s more ways to build “some nest egg”:
- Start a tax deferred retirement plan: 401k or 403b. My husband has one, and he contributes the allowed maximum. He’s had this when he was still single and the amount he’s built up is now so awesome.
- Get out of debt. Pay off those credit card debts especially if you have high interest rate. Many years ago, we got a fixed rate of 4.99%APR (this is for life) on two of the credit cards that we have. Not that it matters that it’s a low APR because we pay off the balance in full once we get the statement, but should there come a time that we can’t pay in full, it will surely come in handy. Eliminate debts as fast as possible by using money deducted from your pay check to your account. You can figure the highest monthly payment you can afford through the calculator at www.bankrate.com.
- Set up an emergency account. They used to recommend to have three months worth of living expenses, but now I seem to hear one has to have six months. Have some money that you can move automatically to a savings account to cover expenses in case of emergencies. If you have this in place, you won’t have to withdraw from long-term savings.
- Invest, but pick the right investments. Saving money is just the start. Having an investment that will earn money over the long haul is a must.
I must say that there’s no secret to building wealth. One needs to live on less than what one makes, and invest the rest wisely. Saving and investing automatically will make it a lot easier to reach ones goals.