8 Simple Tips To Stop Sabotaging Your Savings And Financial Future

Money-and-SavingsMost young people starting their first job are not thinking about retirement. The years fly past quickly and so you need to start saving early to provide for your financial future. It’s wise to begin saving from your very first paycheck.

Here are some simple tips to help you obtain a more secure financial future.

When you are employed be sure you take advantage and invest in the company retirement

plan. Contribute an amount equal to the match by the company. You can find out the amount by talking with the Human Resources or Benefits Department.

If your company does not offer a plan set up your own Individual Retirement Account.

If you are a young person now you cannot be sure Social Security will still be available at retirement time.

Set up a savings account and have an amount automatically deposited into the savings account each month. After a period of time as the savings grow it will probably be wise to consider transferring some of these funds to an investment account which will provide greater return on your money.

Woman Calculating Budget With Savings Jar In ForegroundSet up an emergency savings account and likewise have money deposited into this account each month. The emergency account is for unexpected emergencies such as a job loss, illness, replacement of a major appliance or major home repair. It is a wise idea to try and maintain living expenses for six months in this account.

Set up a workable budget and learn to live within this budget. Do not make it so strict you won’t stick to it for long. Budget a little money to use for fun.

If you have a credit card pay it off each month. If you are carrying a balance and only make the minimum payment each month it can take up to twenty years to pay off the balance.

Once you have a couple thousand in savings it may be prudent to cut down on your savings and work hard to get rid of the credit card debt. It is probably smarter to get rid of a 15% interest payment when you are receiving less than 1% on your savings account. Be sure you maintain some funds in the savings account.

You need to set goals, both long term and short term. You will have greater incentive to save if you are hoping to take a nice vacation, purchase a new car or home, fund your children’s college education, or make your retirement more comfortable and secure.

If you had to settle for a job which is low paying keep your eyes open and try to improve your employment.

Bad habits can really sabotage your finances. Smoking burns up money. Drinking and gambling are both expensive pastimes. Compulsive shopping and spending will play havoc with your financial future.

If you hesitate to make financial decisions because you fear making a mistake enroll in some financial classes or workshops which can help you.