Start saving early…. every time you receive money.
Save a part of whatever money you receive, and whenever you receive it.
Deposit it into an interest bearing savings account.
Interest compounded daily is better than monthly or annually.
When there’s enough to open a CD (Certificate of Deposit), find the best rate for the length of time you choose. CD rates are usually higher than regular savings, but come with rules.
At maturity of the CD, you can take it out, or roll it over adding money to it, or just rollover. If you let the maturity pass by, it will be automatically rolled over as stated in your original agreement.
Add beneficiaries (one or more) to your account(s). Should anything happen to you, the account will go directly to those of your choice. If not, the state handles it, and maybe those you wouldn’t choose yourself, will now own it.
As your account grows, separate it into three, liquid (immediate) accounts — emergencies, a 6 months to 1 year ‘cushion’ account, and the third, a retirement account(s) which can be opened when you receive earned income. Once opened, continue adding to each.
Over time, be more generous with your savings accounts than you are with your immediate gratification purchases. You will be more than happy when you retire and have enough saved in not only your retirement accounts but, if you didn’t need to use the ‘cushion’ account, or liquid emergency account, they’re still there as well …(along with interest).
These are all gifts to you from you! The idea is to save. Save every penny you possibly can.
