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How Much Should You Save? Meet Your Retirement Goals with These Tips

How Much Should You Save? Meet Your Retirement Goals with These Tips

Kim Lankford

Trick Yourself into Saving

Even with all these benefits, you may not initially be able to afford to save 15 percent of your salary. And you shouldn’t be setting aside that much until you cover your other bases first — keeping three to six months’ worth of living expenses in an emergency fund so you don’t have to raid your retirement account (and pay steep penalties) if unexpected expenses crop up. It’s also essential to pay off high-interest credit card debt first so you don’t waste money on monthly interest charges.

But once you’ve met these obligations, the best way to maximize your money is to get it into savings before you can spend it. With a 401k, the money is subtracted from your paycheck before you see it.

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