It’s perfectly O.K. to be nervous or maybe even scared that you’ll do exactly the wrong thing with your big bonus, inheritance or tax refund. But take a deep breath. It’s actually not that complicated.
After months of wedding-planning stress, a relaxing honeymoon can be just what the doctor ordered for weary newlyweds. Yet 60% couples would give it all up if it meant they could afford a house down payment.
There are plenty of tips and tricks out there to help you improve your savings habits, from creating a budget to setting up automatic transfers from your checking account after every paycheck.
But researchers from the Stanford Graduate School of Business have a new one for you: Embrace the power trip.
So you’ve signed up for your company’s 401(k) plan or opened an IRA for your retirement savings. Congrats! That’s a great first step. But if you haven’t made your investment choices yet, you may still be behind the curve.
While a six-figure inheritance or high-paying job can land you in the top 1% of earners, it’s the little things—your money habits—that often make the difference between a life of prosperity and one of constant financial stress.
Start an emergency fund by setting up an automatic transfer every payday from your checking account to a savings account. The amount can be small--$50 or $100, and you can periodically bump it up by $10 or $25 until your savings goal is met.