1st and 15th Financial Corner - Mar 1, 2011

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Okay, you've found a way to make an extra dollar or two, or you've cut some expenses and now you have a positive cash flow. Wonderful! What do you do now?

Start building a nest egg. Ideally, set aside a regular amount every week or month. Make it a habit. Forget you have the money. Open a high-yield savings account and set a regular automatic transfer.

If you are eligible to participate in a 401(k) with a company match, then that’s no choice at all... why would you turn down free money? I’m astounded at how many of my co-workers don't comprehend or care about this. Everyone I know would laugh if my company asked them to work just one day without pay, yet they refuse free money when they don't contribute to the 401(k).

CONCLUSION
Pay yourself first


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Beating Inflation

 

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