Be it for retirement, for a wedding, a big move, a new baby, or just as a precaution, it’s never too soon to invest in your future. In fact, the sooner you start saving for your future the better! There are several ways you can do this, and you can speak to your bank’s representative for further information on which program is the best for you! Until you get a chance to do so, here are some tips to get you started!
Start an Emergency Fund
Part of the strategy to invest in your future is to establish an emergency fund. This should help you financially if you were to find yourself in a tough position (a layoff, or unpaid sick leave). By saving 10 – 20% of your paychecks and building it up to cover your daily expenses for three or six months, or longer if you can afford to do so. If you do find yourself in the position that you need it, you know you have a fall back if needed, and if not, it’s savings you can put toward something else!
Retirement Funds – It’s Never Too Soon to Invest in Your Future
Invest in your future by seting up an IRA account – either traditional or Roth. With the traditional account, you will take a tax deduction on your return and pay the taxes later. With the Roth, you will pay the taxes the year you make your contribution and not get a deduction. With both accounts, you can invest your money directly into stocks, and other investments that will grow over the course of the IRA.
High Interest Accounts
If you’re planning on starting a family but you want to wait a few years, you should open a high interest savings account as a way to invest in your future. Some accounts won’t allow you to withdraw and therefore offer a higher level of interest on your contributions. By choosing one of these and depositing a lump sum, you can watch this money grow at a rapid rate and have reached a much higher level by the time you have your family. It can be used for needs of the children or invested in again as a means of a college fund!
401k / 403b – It’s Never Too Soon to Invest in Your Future
Again, for retirement, if your company offers one of these plans, you should definitely capitalize on it! You should contribute the maximum you can afford, as most companies will match this to a certain extent! The money comes out of your pre-tax paycheck and there are various investment options available to you!
Taking the time to invest in your future, no matter what it is for, is always a good idea. Putting a plan-of-action in place before you have any other commitments or expenses is the best time to start. Remember though, it is never too late to start to invest in your future.
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