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Ways to save to achieve your financial goals

Posted by Louisa Walker on Oct 18, 2017 12:00:00 PM

Topic: ALL

Man writing a check

There are a number of ways to save – and places to help your savings grow – in order to achieve your financial goals

  1. Pay yourself first. It’s easier to save when you schedule automatic deductions from your paycheck or transfers from checking directly into savings. Even if it’s a small amount, start paying yourself first and creating a new habit of saving and/or investing.

  2. Identify waste. Look for even the simplest “leaks” in your budget, such as leaving the lights on, or spending on things you could make or fix yourself. Bank the savings.

  3. Plan & save for college. Research costs of colleges and universities, including general tuition and fee increases. Be aware of tuition variations from school to school, and institutions that may offer your son or daughter tuition assistance, work study programs, grants or scholarships, all of which may significantly reduce your college expenses. In terms of saving for college, you can withdraw money tax-free for college expense when you contribute to a 529 Plan. Named after Section 529 of the Internal Revenue Code, this is an education savings plan with tax benefits operated by state or educational institutions designed to help families save money for future college costs.

  4. Save at work. Participating in your company retirement plan is an easy way to save when money is automatically deducted from your paycheck. And it’s a bonus if your employer matches your savings to any degree. Additionally, when you contribute pretax money toward your plan, you’re saving twice. You’re putting money away for retirement, and you’re paying less in current income taxes.

  5. Roll-over. If you leave a job where your retirement savings are vested, consider all your options, including a roll-over of the vested amount into your new employer’s plan or an Individual Retirement Account (IRA). You may also be able to keep your 401 (k) with your current employer.