Saving money is a challenge for some and saving money for the future and your retirement can be a bigger challenge. Are you saving for your future? If not, remember it’s never too late if you start now! There are several ways for you to save for your future!
My family started saving money after we graduated from college. We started putting a little bit of money away each month. After several years of saving, we feel we are on the path to a healthy future. The younger you are, the more potential you have to place your money away so that it can grow. It’s always a good idea to invest your money several different ways. You don’t want to place all of your eggs into one basket!
Here are a few ways that you can save for your future and your retirement!
1. Open a basic savings account at your bank. It’s great to use this account for a rainy day or to save for your future, however with this type of account you may be tempted to take your money out earlier because it’s more liquid. The interest rates may also be lower than you’d like and your money may not grow very much.
2. Buys bonds. Bonds are a great way to save for the future and they are aren’t as easy to get into as a basic account. Your money is still pretty liquid when you buy bonds but you don’t want to cash them out until they reach their maturity level. Interest rates can be pretty decent and your money has the potential to grow a little more when you buy bonds. You can choose between a Series I bond or a Series EE bond. Do a little research to see which is right for you.
3. Sit down with someone at your bank to discuss opening up a CD (certificate of deposit). There are several different options to choose from and your money has the potential to grow at a higher interest rate. I’ve tried CDs before but didn’t feel the interest rates were good enough so I cancelled them. You may have to pay a small penalty for withdrawing early.
4. Open up a no fee IRA to save for your retirement. Many places do charge fees to invest in an IRA so if you can save more money, do what you can to avoid the fees. The money in an IRA is not very liquid, so if you want to withdraw early, you may be hit with a large penalty!
Remember, if you want to save for your future, the time to start saving is now!
Note: I am not a financial advisor. This information is based on my own understanding. Please seek advice from your financial advisor to see what investment options are right for you.
Disclosure: GigaSavvy is the contributor for this review.
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