Investing

Trying to increase your savings rate without giving too much up or burning the candle at both ends can be difficult. The goal isn’t to stop living; it’s to stop leaking money on things that don’t bring you value. Here are ten strategies—plus a bonus for parents—to keep an extra $1,000 (or more) in your pocket this year. 1. Stop Paying the “Lazy Tax” on Your Cash Most people leave their emergency fund in a standard checking or savings account earning 0.01%. This is a massive mistake. You need to move that cash to where it works for you, not the bank. ...

Everyone loves the Roth IRA. It is the golden child of the personal finance world. “Pay taxes now,” they say, “so you never have to pay them again!” It sounds great emotionally. Mathematically, for the average engineer or professional, it is often a mistake. If you are earning $100,000, you are firmly in the 22% Federal Tax Bracket (plus state taxes). By choosing a Roth, you are volunteering to pay that 22% rate on money you don’t plan to touch for decades. ...