Buzz
As mentioned earlier, it's wise to treat your savings like a regular bill. One effective way to do this is by setting up automatic contributions to your 401(k) based on a percentage of your paycheck. If given the option, choose to save a percentage rather than a fixed dollar amount.
Charlie Shipman from Blue Keel Financial Planning suggests that, instead of contributing a fixed dollar amount, you should automatically save a percentage of your paycheck into your 401(k). This ensures your retirement savings grow automatically with your salary increases.
It may seem like a small tip, but it’s highly effective. Often, when we get a raise, we end up spending it on non-essentials, which undermines our savings goals—this is a classic example of lifestyle inflation. With percentage-based savings, your lifestyle adapts in sync with your retirement contributions.
For more savings strategies, be sure to check out the full article through the link below.
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