#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
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.
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.