Getting started with saving may seem daunting at first, but once you take that first step and make saving a habit, you’ll see how easy it can be.
But it’s up to you to make it happen. Here’s a recap of how to get started.
Set aside savings from every paycheck.
Automatically deposit a percentage of your income (for example, 5-10%) into a savings account. If 5% is too much, start with an amount that’s comfortable for you, and begin to increase it over time. Don’t forget you can also save for retirement by using a 401(K), a traditional or Roth IRA, or the Thrift Savings Plan (TSP).
Every time you receive money, make it a habit to set some money aside in savings.
If you do, you’ll be less likely to spend it and your money will grow with interest. Plus you’ll be ready for emergencies and to make major purchases.
Try to earn the most interest you can on the money you save.
Remember that the amount of interest you earn will depend on which account you choose and the amount you keep in the account over time.