Cool Investments

Certainly, it’s hard enough to live on a small income.  Many people who live paycheck to paycheck can’t even dream about saving money and putting something aside each month. However, it really is possible – and important – to do so.  Here’s how.

Melinda Donovan, a senior vice president and trust officer at Cambridge Trust Company urges people to get into the practice of saving.  Even if it’s only $100 a month, and even if it’s towards the purchase of a car, trip or other item, it’s an essential practice.  Learning to save offers you a feeling of control over your fiscal future and allows you to feel more self-confident.

If you work at a company that has a 401(K), this is the most painless way to save.  Especially if your employer will match the amount that you put into the 401(k), this is simply a win-win situation.  Even if the employer doesn’t match your investment, it’s certainly still worth taking advantage of, as you’ll still have the interest, dividends and capital gains accumulated tax-free.

If your employer doesn’t offer a 401(k) or if you simply want a second retirement account, you can look into using an IRA.  The Roth IRA is particularly great for anyone with taxable income less than $110,000 as a single filer.

While you may initially feel like you simply don’t have enough money to save any each month, you can probably find a way to do so with careful planning.  Each dollar that you save will truly make a difference for you later – and it’s certainly worth putting the effort in now for the benefits down the road.