Let your employer help
If your company matches your contributions to a retirement plan, such as a 401(k), milk the arrangement for all it’s worth. Employer contributions are sometimes more valuable than raises or bonuses.
Let’s say that you earn $100,000 and make an annual contribution of 10% to your 401(k). And let’s say your employer kicks in 50 cents for every dollar you contribute up to 6% of your annual salary.
In that scenario, you’d save $13,000 annually, because your company would pile $3,000 on top of your 10% contribution of $10,000. Best of all, savings in 401(k)s are tax-deferred until you withdraw the money.
