Well, we all hate to save money. It's ridiculous that we struggle to save, but as referenced in my "run" posting, credit card companies, auto dealers and even cable tv and internet service providers make you feel stupid if you don't have an account with them. Don't listen to them. Do this. (This is intended for people with 0 - $99k in savings. If you have savings of $100,000 or more, jump to that section.)
- Here's an outline of the steps you will need to take:
You need a self directed IRA. I won't refer you to any particular business, so google, "self directed IRA" (include the quotes) and look for a side by side comparison of which company to set up an account. Examples include Etrade, TDAmeritrade, Schwab, etc. They all have small print so please use a non biased web site for your comparison. - Next, you will need a savings account. Open one at your bank. Choose the one with no fees. It's better to have a no fee account than a fee based account that pays interest. Today's interest rates are laughable.
- There are two types of savings plans you will set up: Retirement and Investment accounts.
Know this:
- If you have a job with a 401k, invest up to the amount your company matches. for example, if your company matches 100% up to 5% of your contribution, then just do that.
- Next, open a retirement account at an independent financial institution. Contribute the maximum allowed. YOU NEED TO DO THIS! If you don't you might as well stop reading this information.
- Deposit the maximum allowed amount of money into your retirement account.
- at least 10% of it and ideally 25%. I am talking after tax money. For example, if your paycheck is $500, you have to move $50 to $125 of it to a savings account.
- When you get
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