The Struggle To Save

Dec 28 2011 @ 6:35pm

McArdle encourages thriftiness:

If you're not saving enough–and you know who you are–don't decide today that you're going to save 15%, and then forget about it tomorrow when you realize how daunting a task that will be.  Instead, try this: divert an extra 5% of your income into a 401(k), IRA, or other tax-advantaged savings plan.  If your 401(k) is stuffed but you don't have much of an emergency fund–or if, for some reason, you don't qualify for tax-advantaged savings–have 7% of every paycheck diverted to a bank account which isn't linked to your other accounts.  It's a slow week at work, the perfect time to fuss with HR paperwork.

Follow-up on where to save here.