In the spirit of spring cleaning knocking at your door, let’s take a look at a few ways to tidy up this year. Now, we know what you might be thinking, and yes, you probably should start with your closet. But the decluttering definitely shouldn’t stop there.
Our advice? Add your finances to this year’s spring cleaning list and get ahead. Don’t even know where to start? We do! Here are four ways to have a plan for your money.
1) Retirement Plans
You work hard for your money, but don’t work longer for it than you need to. Leave yourself with options by investing in a retirement plan. Social security is unlikely to provide enough income to sustain you.
According to the IRS, a retirement plan serves many benefits including:
- Reduction of current taxable income
- Easy to make through payroll deduction
- Contributions are not taxed until distributed
- The interest accrues over time which can change even small investments into big returns
- Can be carried from one employer to the next
- Improvement of financial security
There are many options to choose from, find one that suits you. Learn more about the ins and outs of retirement plans.
2) Paying Off Debt
Break up with debt this spring and create an actionable plan to leave it behind. Dave Ramsey gives you the fastest ways to pay off debt:
- Pay off debt BEFORE investing in retirement
- Stop using credit cards
- Lower your expenses
- Increase your income
- Most importantly – don’t give up
Don’t let debt win this fight. Using these applicable steps, get yourself to the freshest start of them all – financial freedom. Read more on how to get started.
3) Saving Money
No amount is too little and it’s never too late to start. Place a portion of your income aside and grow your savings. Saving money may seem easier said than done, but it doesn’t have to be. Find a goal for your money and get to work.
Dave Ramsey gives us a few ways to get started:
- Get out of debt
- Cut down areas of your budget –ie. groceries
- Cancel unused subscriptions
- Buy generic
- Say bye to cable
- Pack a lunch
Pick a few that you can stick to and read more ways to save.
4) Group Investing Opportunities
Creating financial security can be a group effort. Pool your money with others in what is called group investing or investment clubs. This is investing in a non-professional setting to a small-scale mutual fund.
While group investing is an excellent way to make money, it’s also an opportunity to learn about the market and share ideas with other investors. Typically, these groups meet once a month to review existing investments and take suggestions regarding new ideas. In these rooms, everyone has a voice with a democracy-style approach.
According to Investopedia, this produces “in theory” the best investment decisions. Learn more about how to get involved.