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The rich didn't make their fortunes with frivolous spending. Get smart about money with these saving and budget tips.
You Will Need
- A savings account
- Safe investments
- A retirement account
- Fewer income-tax withholdings
Decide what a nest egg means to you. A cushion in case you get laid off? Money for a down payment on a home? Determine your goal and how much you’ll need to reach it.
Trim the fat
Take a month or two to write down everything you spend, without changing any of your habits. Take a close look at what you spend money on, and figure out what you can cut—or at least scale back.
Open a savings account
With the money you save, open a high-interest savings account. Sign up for automatic transfer from checking to savings. Even $10 a week adds up.
Put any unexpected money—an inheritance, a work bonus, a government rebate—into your savings account.
Invest in something safe
Once you’ve saved a few thousand dollars, it’s worth moving your money out of your savings account and into a higher interest-earning but relatively safe investment, like CDs or bonds, available through a bank or broker.
Start a retirement account
If your company offers a 401(k) plan, join it, and invest the maximum allowed. If not, open an individual retirement account, or IRA, through a bank or broker.