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We women realize how crucial it is to invest for the future, for Our future. But investing takes money and after paying all the bills, there never seems to be anything left to invest. So where do you find the money to invest?
Here are three easy tips to help you invest more:
Tip One – Take some or preferably all of the extra money you get from bonuses, gifts, tax refunds, working overtime and invest it. Whenever we receive unexpected money, our tendency is to spend it on fun stuff – like a new dress or a new pair of shoes. But what will set you apart from the many women that find themselves unprepared for their retirement years is your ability to forgo spending all your income frivolously today and plan wisely for the future. Start investing Now, so your money starts growing immediately.
Tip Two - If your company has a 401(k) program, contribute as much as you can. Your 401(k) contributions will help reduce your current taxes. These plans allow you to defer your taxes on the total amount of your contribution until you begin withdrawing the money from your account usually at retirement. If your taxable rate at retirement is lower, you'll receive an added bonus from the reduced amount of taxes you will ultimately pay. Also 401 (k) plans typically have higher contribution limits than IRAs do.
An added benefit of 401(k) programs is that your employer may match your contribution with additional dollars up to a certain limit. If your employer offers a matching 401(k) program and you do not participate in it, you are quite literally throwing away free money.
Tip Three - Pay off the balance on at least one of your credit cards and take an amount equal to your monthly credit card payment and invest it in a mutual fund. Many mutual funds will allow you to invest as little as $25 a month. You can even have the money automatically taken out of your bank account each month. Since you have already budgeted your monthly credit card payment, you won't even miss the money…but you will be pleasantly surprised at the end of the year when you see how much money you've made on your investments.
Investing for a secure and comfortable future does not require a lot of money and hours of research looking for the next hot stock, but rather the discipline to save money, not always spend it, putting your money in good solid stocks or mutual funds and the willingness to invest for the long haul.
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