A young couple looks at a laptop and print-outs as they start planning for retirement.

Retirement Planning: Getting Started

posted on

July 1, 2026

Planning for retirement can seem daunting, but breaking it down into manageable steps can make a world of difference. Whether retirement is decades away or just around the corner, taking small actions can help you build a solid foundation for the future you envision. Here are steps you can take over the next four weeks to get started:

Week 1: Envision Your Retirement: Dream It Out

Take time this week to visualize your ideal retirement. Grab a journal or a quiet space and jot down your thoughts. How old do you want to be when you retire? Where do you picture yourself living? What will your daily routine look like? Think about your current lifestyle and the lifestyle you realistically hope to have. Envisioning these details will help clarify your goals and motivate your planning efforts.

Challenge yourself to be specific in your vision—write down at least three activities or experiences you want to enjoy regularly in retirement. Consider what truly makes you feel fulfilled and happy and what that will entail financially.

Takeaway: Envisioning your retirement isn’t just about daydreaming; it’s about setting clear goals based on the lifestyle you hope to have that will guide your financial planning.

For next week: Speaking of setting goals, we’ll dive deeper into calculating your retirement savings needs to ensure your dreams are fully supported financially.

Week 2: Crunch the Numbers: Calculate Your Needs

Now that you’ve imagined your retirement lifestyle, it’s time to crunch the numbers. Estimate your monthly expenses and project them into the future, accounting for inflation (about 3% per year). Consider healthcare costs and any potential income from Social Security or pensions. Will your mortgage be paid off? This exercise will give you a clearer picture of how much you’ll need to save.

Be sure to consider your basic expenses and experiences you’d love to include in your retirement budget.

Takeaway: Understanding your financial needs in retirement is essential for setting savings goals that align with your desired lifestyle.

For next week: Now that you have a clearer picture of your financial needs, we’ll explore your retirement savings accounts to ensure you’re on track to meet those goals.

Week 3: Review Your Retirement Accounts: Gather Information

Dig into your retirement savings accounts. If you have an employer-sponsored plan like a 401(k) or 403(b), request a copy of your benefits package to understand the specifics. Also, review any personal IRAs or other savings accounts you may have.

Knowing how much you have saved and where you stand financially is crucial for planning your next steps. This will help you look for opportunities to improve your retirement accounts moving forward.

Takeaway: Being informed about your retirement accounts empowers you to make strategic decisions to maximize your savings potential. Taking time to gather and review all the tools available in your retirement toolbox will help you get on the best path to reaching your ideal destination.

For next week: With a clearer understanding of your retirement accounts, we’ll discuss thoughtful adjustments you can make to optimize your contributions and accelerate your savings growth.

Week 4: Make Smart Adjustments: Optimize Your Contributions

Evaluate your current retirement contributions. Are you maximizing any employer match opportunities? If not, adjust your contributions to take full advantage of this benefit—it’s essentially free money! Consider setting up automatic increases annually or with each pay raise to steadily build your savings over time without feeling a sudden jolt.

Many free calculators available online can help you visualize the impact that small increases will have on your final retirement total, which may motivate you to sacrifice today for a more secure tomorrow. Challenge yourself to set a specific savings goal for the next year and outline steps to achieve it, starting with adjustments to your contributions.

Takeaway: Small adjustments to your retirement savings strategy today can significantly impact your financial security tomorrow.

Remember, building a secure retirement is a journey that requires consistent effort and planning. By dedicating just 30 minutes each week to these actionable steps, you’re taking proactive steps toward achieving your retirement dreams. Stay focused and keep moving forward—you’ve got this!

Article Credit: BALANCE

A piggy bank wearing a hard hat is next to a person using a calculator, representing saving for an emergency fund.

Saving More and Building an Emergency Fund

posted on

June 22, 2026

Saving for a rainy day and building an emergency fund can seem daunting. Let’s focus on small action steps to make this process more approachable.

Identify Your Emergency Fund Goals

There are many different schools of thought about how much you should save in various categories. An emergency fund should be your priority, as it will help you stay on track with all your other financial goals when life goes sideways or unexpected expenses pop up. Below, we will come up with a rough estimate of how much you need in two different emergency funds.

Short-Term Emergency Fund

This emergency fund is for small, unexpected expenses that could cause you to go into debt if you don’t have money to cover them. These expenses could be anything from replacing a tire after getting a flat to paying an unexpected medical bill. Most of us will have some unforeseen expenses every month, and we should add a buffer to our monthly budget for these recurring surprises.

However, it’s essential to have a stash of cash for the pricier surprises that may come up. According to the Federal Reserve’s 2018 Survey of Household Economics and Decision Making, in which some 12,000 households were asked about their financial well-being, 40% of Americans would struggle to come up with even $400 for an unexpected bill.

This is a good number to shoot for when it comes to a short-term emergency fund. However, if you can save more, $1,000-$1,500 is considered a healthy amount. Starting small and building this fund over time is better than not having anything in it at all. Consider your lifestyle and situation and determine your realistic goal.

Long-Term Emergency Funds

This goal is more straightforward to calculate. Long-term emergency funds are meant to prepare for income shocks. You would rely on this money should you or your partner lose your income for an extended time. Experts suggest saving 3-6 months of living expenses. We recommend starting with the goal of saving the equivalent of one month of expenses to help you build momentum.

To calculate this number, add up all of your monthly expenses and identify how much you’d need to cover your essentials if you suddenly had no income:

Rent or Mortgage

Car payments and insurance

Groceries and Utilities

Credit card payments and any other monthly bills.

Any other non-negotiable categories, such as pet food, medical expenses, and tuition.

Takeaway: While emergencies are unexpected, we can begin to prepare for the unexpected in advance to cushion ourselves from their negative impact and lessen future financial stress.

Review Your Financial Statements

Set aside 30 minutes to review your bank statements and any other financial accounts you use to pay for any day-to-day items or monthly bills. Before you begin this process, take a moment to get into the mindset of reviewing them as if you were an unrelated third party. What would you think was essential to this person?

Take an honest look at what you see. If you were a stranger looking at your statements, what assumptions would you make about yourself? What is important to this person? Does your statement tell the story of who you want to be, or do you see things you’d like to change?

Next, based on the exercise you just did, identify areas you would like to eliminate or find one or two things you can do to be more mindful.

Do you see a lot of fast-food purchases? A subscription you use sparingly? Are you spending a surprising amount in a specific category? These questions can help you zoom in on what that might be.

Once you’ve identified these expenses, estimate a reasonable dollar amount that you could save if you eliminated or reduced them over the next month.

Takeaway: Our financial statements can often be very telling; they show what’s important to us and where we may be irresponsible or careless. Reading the story they tell about our habits and priorities can be difficult, but reviewing them with an open mind can also be a catalyst for change.

Challenge Yourself

Now that you’ve reviewed your statements and taken inventory of your habits and holdups, let’s build momentum by taking swift action with a challenge. This week, try one of the following challenges to build momentum quickly when it comes to freeing up money that can go toward your emergency funds:

1) Don’t spend money on food. Eat only what you have on hand. Get creative and remind yourself that you can do hard things, and this is only one week of your life. Pack your lunch, bring snacks, and eat that produce before it goes bad. We bet you have more food on hand than you realized.

2) End one subscription. This will give you automatic savings each month.

3) Only spend cash this week. Unlike swiping a card, spending with cash is a more tactile experience. The psychological impact of seeing your stash of cash dwindle over the week may surprise you and cause you to think more about your purchases.

Takeaway: Focusing on one action step can free up funds quickly. It’s not easy, hence the word “challenge,” but focusing on one thing instead of many can make a goal more obtainable.

Automate, Automate, Automate

When it comes to saving consistently, automation is a great tool. Manually transferring your funds to a savings account takes up mental space and ongoing time and requires willpower when you may be struggling.

Take thirty minutes to set up automatic transfers or payments to your emergency funds. These can be weekly, bi-weekly, or monthly. Your future self will thank you, and you’ll be surprised at how quickly saving has become a habit instead of a chore.

Takeaway: Automation frees up time and mental space, making it much easier to implement a habit and reach your goals!

Article Credit: BALANCE

Two people at home work on saving money.

Saving Money at Home

posted on

June 8, 2026

In a world where expenses seem to multiply overnight, mastering the art of frugality becomes essential. Luckily, numerous ways exist to cut costs without sacrificing comfort or quality of life. Let’s embark on a journey, exploring practical tips to save money around the house.

Cut Back In The Kitchen

The kitchen is often the heart of the home and a hotspot for unnecessary spending. However, with creativity and planning, you can significantly reduce your grocery bills and avoid unnecessary expenses. Try to reduce your grocery expenses by using one or more of the tips below:

Pantry Creativity: Challenge yourself to get creative with pantry staples and use what you have before purchasing new items. Take inventory of what you have on hand and plan your meals around those ingredients.

Meal Prep Mastery: Spend some time each week prepping meals. Not only does this save money, but it also ensures healthier eating habits and eliminates the temptation to dine out. For example, brown ground beef and use it in pasta, soups, tacos, or wraps. You’ll be more likely to feel motivated to throw a meal together at home, knowing the clean-up will be minimal.

Bulk Buying: Purchase frequently used items in bulk and portion them out for future use. This saves money, reduces packaging waste, and lets you get the best deal.

Ditch Bottled Water: Invest in reusable water bottles and say goodbye to pricey bottled water. Not only is this eco-friendly, but it also saves considerable money over time. Pro-tip: Pre-fill bottles in your fridge for a more convenient experience.

Treat Yourself Wisely: Instead of indulging in frequent impulse purchases like expensive coffee runs, allocate funds for pricier items you really love, like all the supplies to make that double-shot, almond milk, two pumps vanilla, two pumps brown sugar latte you love. Even with all those bells and whistles, it will be cheaper to make at home.

Takeaway: Small changes add up, and you can’t cut your subscription to food and water like Netflix, but you can build frugal habits to keep costs down.

Reduce A Utility Expense

Most utilities are like food – you’ve just got to have them, and they are in the category of expenses that can often sneak up on us. With prices rising, it’s more important than ever to establish and practice good habits to ensure your bills don’t become a burden. It takes practice, but you can significantly reduce these expenses with a few adjustments. Review your utility bills and consider ways you can reduce your usage or identify any unnecessary expenses. Here are a few tips and examples to get you started:

Electricity Efficiency: Unplug appliances when not in use, set timers for electronics, and consider installing a clothesline for air-drying laundry.

Water Wisdom: Install a water heater timer, opt for cold water when washing clothes, and be mindful of water usage to reduce your water bill. Try washing your clothes in cold water to cut your energy bill even further!

Rechargeable Revolution: Invest in rechargeable batteries to reduce the cost of single-use batteries. They are a bit more expensive upfront but will save you money in the long run, especially for devices you use regularly, like your television remote.

Entertainment Evaluation: Review your entertainment subscriptions, compare prices, and consider consolidating or canceling services to save money. You may be shocked to find you’re paying for a subscription you don’t use monthly.

Takeaway: While you may not notice a life-changing amount of savings in one week, this is a cumulative effort that will be well worth the effort in the future and add up to a valuable daily practice.

Learn A Simple DIY Skill To Save Over Time

Taking a do-it-yourself approach can lead to significant savings in various areas of your household expenses. We get it—not everyone is Mr. Fix It or ready to star in an HGTV show, but starting small and ending in significant savings will empower you to try new things. Identify an ongoing expense that you could do yourself to reduce consistently. The internet has a wealth of knowledge, and you can easily find blogs, articles, and video tutorials.

Homemade Cleaners: Make your own cleaning solutions using simple ingredients like vinegar and baking soda. Pull up your old pal, Google, and you’ll find an array of surprisingly easy-to-make laundry detergents that work with HE washers. Besides saving money, these cleaners often offer less exposure to dangerous chemicals.

Take Time to Learn: YouTube is full of easy-to-follow tutorials for DIY projects, so you can start small and build your skills and confidence around the house. Maybe you have a running toilet—taking the time to learn about maintaining and understanding your home is a wise investment in your time. Taking care of minor fixes can help you avoid the cost of hiring a professional down the road.

Tool Time Tactics: Instead of purchasing expensive tools for occasional use, consider renting them. Many local libraries allow you to check out more than just books – they also have tools. Can’t find somewhere to rent a tool? Consider polling social media to see if anyone has what you need and would like to lend it to you in exchange for a few bucks.

Takeaway: You don’t have to lay down new flooring to cut costs around your home. Understanding how to fix or remedy issues is an investment worth making.

Future-Focused Financial Planning

Being proactive about future expenses can help you avoid costly surprises and spare yourself ongoing stress. As we build on all the practices we’ve put into place, it’s essential to look ahead and make a plan, so all your efforts aren’t diminished by a series of unfortunate, unplanned events.

Insurance Assurance: Ensure you have adequate insurance coverage, including renters’ insurance, and regularly review your policy terms. Know what’s covered, your deductible, and how to file a claim. It’s also essential to have a good record of what would need to be replaced should something happen, like a fire. One easy way to do this is to video your home monthly, giving you a visual reminder should you need it.

Maintenance Mindset: Set annual reminders for home maintenance tasks such as changing filters, cleaning gutters, and inspecting smoke detectors to prevent costly repairs. An ounce of prevention is worth a pound of medicine.

Seasonal Preparations: Take proactive measures to prepare for seasonal challenges, such as trimming trees before storms or insulating pipes before freezes. Something as simple as forgetting to cover an outdoor faucet before a freeze could become a significant (and expensive) issue.

Takeaway: With a bit of creativity, planning, and discipline, owning a home and the unexpected issues and expenses that come with it can be kept manageable and allow you to enjoy the peace of mind that comes with financial stability.

Article Credit: BALANCE

Money-smart travel: save now, live it up later

posted on

May 1, 2026

When you think about it, planning is one of the best parts of taking an exciting vacation. Putting your dazzling itinerary together and daydreaming about all the amazing things you’ll see can really get the juices flowing. However, if you haven’t planned for the financial impact of your trip, money concerns in the months after your excursion can tarnish your happy memories.

Preparing well in advance can help relieve the stress and strain of paying for your travel. That, in turn, frees you up to focus on all the fun parts of getting ready for your excursion.

Here are a few pointers for assembling funds to ease your mind before, during, and after your incredible vacation adventure.

A price tag for paradise

Creating a trip free from financial stress starts with knowing how much the journey will cost. Clear several hours on your schedule to get a complete grasp on the entirety of your outlay. Though it may seem daunting to stare down such a big number, ultimately, it can give you peace of mind knowing you won’t have to worry about months of supersized credit card bills after you return home.

Calculate before you vacate

Once you know the grand total for your getaway, it’s time to start your plan to make it happen! Divide the cost by the number of months until your departure; this is your monthly magic number.

Ponder your pillars

As with so many financial goals, making your adventure a reality comes down to the four pillars of personal finance: expenses, income, assets, and debts. If the monthly magic number is more than what you can currently put toward your vacation fund, don’t fret. It just means you’ll need to make a few adjustments in one or more of the below areas.

Pillar I: Expenses

Planning for your vacation is a terrific time to review your monthly spending plan. Typical areas of emphasis for clearing up space include dining out, entertainment, and subscriptions. But no one knows your situation better than you, so go over your expenditures to see which areas of spending money are a lower priority.

A recent study found that the average American spends $1,200 per vacation. By challenging yourself to trim just $100 per month in expenses, you could potentially pay for a whole extra trip each and every year without having to worry about generating additional income.

Pillar II: Income

This one can be a bit trickier. If you can work a few extra hours at your job, consider using the overtime to rev up your travel fund. But you don’t want to spend 50 weeks of the year miserable just to have two weeks of bliss. Income is an excellent area for creative thinking. What things would you enjoy doing to get more cash rolling in?

Pillar III: Assets

Many people find happiness in accumulating memories instead of material possessions. If you think you might fall into this category, consider bulking up your trip savings by liquidating unwanted items via online auction sites, social media marketplaces, or an old-fashioned garage sale.

Some big-picture thinking might be in order too. If your home or vehicles are more than you need, downsizing your life a bit could mean more magical travel moments in your future and less stress about affording them.

Pillar IV: Debts

When measuring the monthly costs affecting your ability to save, consider the impact of carrying expensive credit card debt from month to month. The interest you pay each month on unsecured debts could help you get to that special place faster or maybe even enjoy a more deluxe experience once you’re there.

Set it and forget it

Trying to remember to put money away for your vacation every month isn’t likely to be your best strategy. Instead, setting up a savings account specifically for your trip and having money automatically deposited from each paycheck into that account gives you a simple and guaranteed way to amass the funds you need.

Frame your mind

Spend all too much time daydreaming about relaxing on that beach or climbing those ancient ruins? You can put that spirit to work for you. First, make the background image on your phone a picture of your dream trip. Then any time you’re tempted to make an impulse purchase, pull out your phone and let the dreamy picture help keep your eyes on the prize.

Flex your flexibility

If circumstances change and you’re just unable to save the monthly amount you initially anticipated, consider pushing back your travel dates. It may be a bummer to think about delaying your getaway, but waiting until you have the money before you travel can mean not having to pay tons of interest on the cost of the trip. Not only does that save you money, but it can also help you take the next trip after this one sooner.

Many happy returns

If you find it challenging to save, there’s no need to feel shame about it. If you use your tax refund each year as your travel fund—and that strategy works for you—keep it up. It’s better to rely on a tax refund than a performance bonus because the latter may or may not happen in any given year.

When you’ve got the financial aspect of your vacation figured out, the fruity drinks taste sweeter, the exotic dishes are more delicious, and the relaxation is more delightful. You deserve that.

Article Credit: BALANCE

Saving for Homeownership

posted on

October 15, 2025

For most people, buying a home is both an exciting and challenging venture—it is the quintessential American dream. However, because of the high costs involved, saving for home purchase takes commitment, research, and sometimes sacrifice. This fact sheet will provide general information on the costs involved and the types of expenditures you will need to save for in order to buy your first home.

The down payment

The down payment will be the most significant outlay of your pre-purchase costs. The rule used to be that you needed to put down 20% of the purchase price, and you would obtain an 80% mortgage. Today, homebuyers can buy a home with as little as three to five percent down. If you do put less than 20% down, you will probably have to purchase private mortgage insurance, which will cost you between .5% to 1% of the loan amount until your equity reaches the full 20%. Keep in mind that the more you put down, the less your mortgage payment will be.

Earnest money

Earnest money is a cash deposit you make when you submit your offer, which proves to the seller that you are serious about wanting to buy the home. Your real estate broker will deposit the money into an escrow account, and if your offer is accepted, it will be applied towards the down payment. If the offer is rejected, it will be returned to you. Typically, the earnest money deposit will be about two percent of the price of the home.

Closing costs

Closing costs include all fees required to execute the sale transaction, such as attorney fees, title insurance, appraisals, points, and tax escrows. Typically, these fees are paid up front. The average cost is three to five percent of the purchase price.

Post-purchase reserve funds

You may also need to prove to the lender that you have some reserve funds to protect against potential cash flow problems. This not only is assurance for the mortgage holder, but is also for your peace of mind. Post-purchase reserve funds should be at least two to three months’ worth of housing payments. This money is recommended to be in a savings account and accessible without penalties for early withdrawal (though money in a retirement account can also be counted toward the reserve requirement).

Cost breakdown

So how much money will you need to come up with to buy a home? The actual figure depends on many factors. You may have to save more or less for the same home depending on current interest rates, whether you get a fixed or an adjustable rate mortgage, repayment terms, and your credit rating. Other expenditures you may want to save for are landscaping, immediate repairs, redecorating, furnishings (particularly if you are moving into a much larger space), and moving expenses.

Example for a $300,000 Property:

20% Down payment $60,000
3.5% Closing costs $10,500
3 Month reserve fund* $5,625
Total estimated pre-purchase costs $76,125

* $1,875 per month for Principal, Interest, Taxes and Insurance. Example based on a 30-year fixed mortgage, 6% interest, $2,436 annual property tax and $2,796 annual homeowners insurance.

Educate yourself

Obtaining high quality, objective home ownership education is essential for first time homebuyers.

The Department of Housing and Urban Development (HUD) can put you in touch with the nearest housing counseling professional in your area by calling (800) 569-4287. You will learn how to develop a reasonable savings goal and time frame, how large a mortgage you qualify for, and the approximate price range in which you should be looking. You will also be given feedback about your credit score, and what you need to do in order to make improvements. Suggestions may include increasing income, paying down debt, closing unused accounts, paying collection accounts, correcting errors, and making timely payments for a specific time period.

Review your spending plan

Analyze your current financial position by reviewing all assets and liabilities. Do not overlook any source of funds. Include all checking and savings accounts, CDs, stocks, mutual funds and savings bonds. Retirement funds such as a 401k or an IRA can be counted toward the reserve requirement. You may even be able to borrow against your 401k plan and use the proceeds toward the down payment (check with your human resources department for details and restrictions).

Prepare a cash flow spending plan to determine how much you can realistically save each month. You may choose to sacrifice some expenses or delay the purchase of non-essential items in order to meet your monthly goal.

Save effectively

Some good techniques for effective saving include:

Set up direct deposit with your employer, where a portion of your income is siphoned directly to a savings account. What you don’t see, you don’t miss.

Track your spending. Awareness leads to diligence and thrift.

Get the family involved. It is easier to save when everyone is excited and working towards the same goal.

Tape a photo of the home or type of home you are saving for on the refrigerator or computer. It will be a constant reminder of your objective.

Ultimately, saving for a home is a choice. If you find your savings plan to be unfeasible, consider extending the time frame.

Conversely, if you really want to stick with the original time frame, you may want to buy a home that has a smaller purchase price—and buy “up” later. The idea is not to abandon the dream, but to reassess, reorganize, and reengage!

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. The payment example displayed above is intended for educational purposes only and does not depict SRP’s current offerings. Membership required. SRP is federally insured by NCUA.

Article Credit: BALANCE 

A jar full of coins next to a notepad for listing monthly expenses.

Five easy ways to cut monthly expenses

posted on

October 1, 2025

Ever notice how your monthly expenses always seem to equal whatever salary you’re making, even after you get raises? The phenomenon is called “lifestyle creep,” and it can keep you from reaching all kinds of financial goals, from paying down debt to saving for retirement.

One way to get lifestyle creep under control is to have any future raises you earn directed into savings. Consider diverting the raise to savings via direct deposit or increase the percentage that you contribute to your retirement account.

While you are waiting on that raise, here are a few things you can do right now to cut your monthly expenses.

Make a budget

The first step toward cutting expenses is to make a budget, so you know exactly where your money is going. Start with major categories, like rent or mortgage, utilities, transportation, meals, clothing, and entertainment. Then break it down even further to ferret out items that are ripe for reducing. Many people, for example, are surprised to learn just how much they pay for pricey lattes and snacks from restaurants and vendors that would cost a fraction of that amount if they were made at home or purchased at a grocery store.

Lower your mortgage payment

The biggest monthly expense for many people is their home mortgage. If you haven’t examined that loan since you bought your home years ago, it’s quite possible that you could save a lot of money – both now and over the life the loan – if you refinance at a lower interest rate. To know whether refinancing makes sense, you’ll need to add what you’ll spend on closing costs into the calculation of your new monthly payment.

Get an insurance checkup

If you have a car, you absolutely must have car insurance. But it pays to shop around periodically to make sure you’re getting the best deal. If you have a decent emergency fund on hand in case of an accident, one way to lower your premiums is to increase your deductible. Also be sure to examine your policy for “extras” you may not need. For example, you could be paying for roadside assistance both through your insurance policy and through AAA.

Examine your auto-payments

Putting your regular bills on auto-payment can be a really smart way to protect your credit rating by ensuring you’re never late with a payment. However, if auto-pay causes you to keep paying for items or services you don’t really need or use, it’s no bargain. A few common culprits include unused gym memberships, subscriptions to magazines that aren’t read, and cable or satellite TV plans that include loads of premium channels that are rarely watched.

Cut the cord

If you’ve already ditched your land line, good for you! If not, doing so is one of the quickest and most pain-free ways to trim your expenses. Most all of us have our cell phones with us all the time anyway, and if you really like the feel of a traditional phone in your hand, a VOIP (Voice Over Internet Protocol) plan that provides phone service over the Internet is a lot cheaper (free in some cases) than traditional land line service.

Article Credit: BALANCE 

A piggy bank stands next to a four stacks of coins with increasing heights. On top of each stack, blocks spell out "401k," illustrating saving for retirement with a 401(k).

The 411 on 401(k)s

posted on

September 15, 2025

As pension-style retirement plans have fallen by the wayside, the 401(k) plan has become the go-to option for many companies looking to help employees save for retirement. The 401(k) enables workers to set money aside, and not pay taxes on it or its earnings until they retire and begin withdrawing funds from the account. Here are some key things you need to know about these tax-advantaged accounts.

Contribution amounts

One of the best things about tax-deferred retirement accounts like the 401(k) is that you make contributions pre-tax, so in addition to saving for the future, you’re reducing your income taxes right now. But there are limits, set by the IRS, to how much you can put away each year. These limits do change from time to time, so perform a quick search engine query to learn the latest numbers.

If your company automatically enrolls employees in their 401(k), the default contribution amount probably won’t be anything close to the maximum, but you can probably elect to contribute more. If contributing the maximum is not doable right now, one smart strategy is to funnel any future salary increases into your 401(k) until you reach the maximum contribution.

Matching funds

As part of their employee benefit package, many companies will match employee contributions to a 401(k) up to a certain percentage. For example, say you make $50,000 a year and your company matches up to 3% of your salary. When you contribute 3% (that’s $1,500) to the 401(k), the employer match of that amount boosts your annual investment to $3,000. If your employer offers matching funds, be sure to contribute at least as much as you need to get the full match. Otherwise, you’re leaving money on the table.

Vesting

Any money that you contribute to your 401(k) is completely owned by you, from the start. Though your investments may go up or down, you still own it when you leave your employer. Some companies, though, impose “vesting” requirements on the matching funds they contribute to your account. They may, for example, require you to stay employed for a set amount of time before you’re entitled to (or “vested” in) the funds they contribute to your account. If you leave your job before fulfilling your employer’s vesting requirements, you may receive only a portion (or none) of the matching funds.

Investment options

Most 401(k) plans have several options for investing your retirement savings and some may even offer the services of a financial advisor to help you choose the right mix for your age and investment goals. As a general rule, though, the younger you are, the more risks you can take because you have more time for make up for potential losses. As you get closer to retirement, you’ll probably want to shift toward more conservative investments. Whatever your age, though, it’s important to be diversified – which is just a fancy way of saying “don’t keep all your eggs in one basket.”

Article Credit: BALANCE

A collection of seashells, such as conch, starfish, and clamshells, on smooth white sand.

Money-smart travel: save now, live it up later

posted on

September 1, 2025

It might seem like a strange time to be thinking about vacationing, but preparing well in advance can help relieve the stress and strain of paying for your travel. That, in turn, frees you up to focus on all the fun parts of getting ready for your excursion.

Here are a few pointers for assembling funds to ease your mind before, during, and after your incredible vacation adventure.