If you’re like most Americans, your New Year’s resolutions probably involved saving more money. However, it’s much easier said than done! Audicus is here to get you back on track for saving money for retirement and for the rest of your life.
Saving Money Tip: (Ac)Count it Up!
One of the best ways to save money for later in life is to utilize different types of accounts. If you are still working, make sure you have opened an IRA, a 401(k), or both. These are both retirement savings accounts that are much more beneficial than a plain old savings account.
401(k) accounts are sponsored by your employer and many employers will match a percent of your contribution each year. IRAs are personal accounts that you contribute to annually and watch it grow over time. There are two types of IRAs—Roth and traditional—so make sure to research or consult with a financial planner to determine which plan is the best for you.
Saving Money Tip: Invest, Invest, Invest
If you have some disposable income and are wondering what to do with it, investing is a great choice. A lot of people have no idea where to start when investing money, but luckily there are many handy tools that can help. There are a number of investment apps for your phone that can assist you in making smart and profitable investments—check out our guide to investment apps here.
Investment apps are very helpful tools because everything is right at your fingertips. No need to wait for an appointment with a consultant or go to the bank—you can do everything directly from your cell phone!
Saving Money Tip: Better Budgeting
Perhaps your 2018 resolution was simply to better manage your budget, whether that be weekly, monthly, or annually. In the past, budget planning was often done by hand, on paper. But it’s the 21st century and there’s an app for everything! There are many types of budgeting apps available, the most popular being Mint, You Need a Budget, and Wally.
Some quick tips for those new to budgeting:
- Record ALL of your expenses, even the occasional morning coffee
- Set a goal—choose something concrete to save for
- Plan to save money, not just break even (10-15% of your income is a good start)
- If you share finances with a partner, have a serious discussion about shared priorities
- Realize each month is different and allow your budget to be flexible
If saving money is important to you (and who doesn’t love to save money?), it’s essential that you evaluate and reevaluate regularly to determine if you are on the right path. Whether you are saving money for retirement or just a nice vacation, you need discipline and planning. Use these tips and tools at your disposal and you should reach your goals with ease!