Money Tips – No Brainers
Some Help on the Road to Your Financial Independence
We have been writing and posting blogs consistently now for the last several months. It has helped us stay current on lots of new money trends and we hope that it is helping you too. While doing my research this week, I found a listing of little “snippets” of money advice that I thought I would share with you. None of them are truly “rocket science” but great reminders on things to definitely DO when you are handling your personal finances.
Take Advantage of your Work 401k
When starting a new job, it is easy to think that you should wait to start investing. You haven’t even received your first paycheck and you are anxious to start making money! This is a no-brainer. Do it! Most employers offer a match to your contribution in some percentage. This is absolutely FREE money. Take advantage of this as quickly as possible and you will be amazed at how quickly it will grow. After a couple of paychecks, you won’t even miss the money that is being pulled out each payroll. It grows tax deferred plus your investment dollars are pulled out of your paycheck before you pay taxes on them. Saving taxes and saving for retirement. Do It!
Watch Lifestyle Creep
I am sure that you have heard of the phrase “Keeping up with the Joneses’”. This is an easy trap to fall into – especially when you are first starting out. Your best friends from college already have a house and a new car and it is so easy to jump on the bandwagon and buy one too. The easy advice here is “Live within your means”. Watch your finances early in life and it will become a habit. Don’t let your lifestyle overtake your income!
Build an Emergency Fund
Are you tired of us telling you this one? Emergencies happen to all of us and the emergency fund will always be there to provide you with some relief. My truck has been acting crazy the last couple of weeks. It hesitates at the stop light but it doesn’t do it every time. My mechanic calls it an intermittent problem! We took it to the shop last week and it cost me almost $200 but it is running much better. We pulled the cash out of our emergency fund and paid my mechanic. We didn’t have to put it on a credit card because we have been planning for these types of expenses for years. Build an emergency fund of $1,000 and you won’t believe how much comfort and relief it will provide you and your family. Now, we have $800 in our emergency fund and we will work over the next couple of weeks to replace the $200 that we used to build it back up.
Next week, I will have a few more tips for you. Drop us a note and let us know what you think. Is this helpful to you? We would love to have your feedback.
If this makes sense to you but it just seems impossible or overwhelming, give us a call and schedule an appointment. We are experts at it and will be happy to offer you some basic direction and advice. It is what we do at Hollander & Associates.