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Savings Basics and the Power of Compounding

WYW Episode 3 Savings Basics

Put Some Muscle in Your Money

Even with only a little to set aside each month, young professionals are often curious about how to strategically save extra cash to achieve financial security. Financial independence requires creating and sticking to a reasonable budget and developing a disciplined savings plan. Whether you want to purchase a new car or home, are thinking about starting a family, or would like to retire by a certain age, you will need to plan accordingly to ensure the necessary funds are available.

Figuring out how to meet your immediate living expenses while also creating an emergency cash fund and planning for retirement can feel overwhelming when you are just starting out, but proper guidance can help you develop a road map to meet your goals. It is important to understand the characteristics and benefits of traditional savings accounts, employer-sponsored 401(k) plans and individual retirement accounts so that you can allocate your savings in order to maximize your future wealth. The differences in your future nest egg are staggering if you begin saving today compared to ten or twenty years from now, so it is never too early to start thinking about your savings and retirement plan.   

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