1. The easiest way to save money is by having the same amount
transferred automatically each month from your paycheck or bank
account to a savings plan.
2. One of your first savings goals should be three to six months of
living expenses as an emergency cushion. You can earn the most
money on the savings if you have your money deposited regularly
in a money market fund.
3. The easiest way to save for retirement is through a 401(k) or
403(b) plan at work. Try to contribute the most your company
allows.
4. If you don't have a retirement plan at work or you can afford to
save more, consider a Roth IRA. If you are self-employed, consider
a SEP-IRA or a Keogh.
5. If you're saving for college education for your children, check
all the options carefully. There are state-sponsored savings
plans. Education IRAs, and other plans, but check with your
financial adviser because some of the plans can affect the
amount of financial aid your child will be able to receive.
