#SavingsJourney #InvestingWisely #FinancialWellness
Hey everyone! š
Iām so excited to share that Iāve finally reached a point in my life where saving is no longer just a dreamāit’s becoming a reality! After navigating through years of addiction, an unplanned little one, and bouncing from job to job, my 20s were definitely a rollercoaster ride. š¢
But now at 30, life is looking up: Iāve landed a stable job, am living sober, and am ready to take charge of my finances. šŖ Iāve already got a 401(k) with a maxed out match since March, and Iām itching to save even moreāthink around $100-$200 (or maybe even more) each week!
So hereās where I need your help: how do I **increase my savings** and make my money work for me over the long term? Iām really looking for investment options that will benefit my sonās future and help with my retirement in 20-30 years.
### Some key points Iām considering:
– **Long-term focus**: Iām interested in savings that arenāt just for a short-term gain. Itās about building a future.
– **Low risk**: I want to avoid anything too volatile. Who needs the stress?
– **Decent returns**: While I’m okay with smaller investments, Iād like to see some good growth over the years. š±
### Why is this important?
Many people face challenges when it comes to savings due to:
– **Financial instability**: Life events can really throw you off course and affect your financial habits.
– **Lack of knowledge**: Not everyone knows where to start with investing or saving effectively.
### Possible Solutions:
– **Index funds or ETFs**: These are often low-cost and can provide diversification!
– **Robo-advisors**: Great for hands-off investing with some decent strategies for growth.
– **High-yield savings accounts**: For easy accessibility and a better interest rate.
Iād love to hear your experiences! What has worked for you in terms of increasing your savings? Any tips on low-risk investments? Letās get the conversation going!
Thanks so much in advance for all your wisdom! š¬āØ
Do you have the option to save after tax in your 401K that you are able to take out for emergencies? We have that and I put a little in that every paycheck.
Make sure you have a six month emergency savings at minimum. You may want a little more since you have a child. Put that in a HYSA.
After that start a Roth IRA for yourself.
If you max out your IRA and arenāt at 15%, bump up your 401k savings.
Once youāre investing 15% of your gross pay into retirement start your child a 529 account. Make sure youāre investing 15% in yourself before you do this. Donāt give your child free education but then make them pay for your future because you didnāt invest in it.
get a high-yield saving account for this. very very low risk, significantly better returns than a traditional savings account, and very minimal effort.
or, try a āfidelity goā account, and set it to the most conservative option with a 20year timeline. theyāll automate a lot of this for you, and youāll have whatever level of risk youāre comfortable with.
whatever you do, set it to direct deposit from your paycheck, and keep it at a different bank than you usually use. thisāll add friction between you and this money, making it comparably harder (and therefore less likely) to take out, compared to your usual bank.