You may not even have to do anything to get the free money. Because employees sometimes need to be nudged to save for their retirement, many employers automatically sign their workers up for a 401(k). Some companies even offer an "escalation feature," which slowly increases the percentage of your salary that you save. For example, you might start by saving three percent of your salary but then get bumped up to four percent after working for several years.
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Once you’ve got all of these bases covered, you’re ready to consider investing. But make sure you know why you’re investing before you start. Ask yourself questions like how do you plan to use the money you’re investing? Is it for a down payment on a home? A dream vacation? Retirement? How soon will you need the money? How would you feel if you lost some of it?
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"If you are applying for a mortgage or car loan and 'rate shopping,' it's likely that several lenders will check your score around the same time," Pickford says. "In that case, as long as all the inquiries fall within a 30-day period, they'll only be treated as one inquiry and won't have an impact on your score."
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Barker notes that how you earn your money could change the paperwork. For example, if you work hourly, part-time, or are paid weekly, you’ll need four pay stubs, instead of the usual two. For added transparency, self-employed applicants require two years of tax returns and their most recent profit and loss statement to show their revenues, costs, and expenses during a fiscal year.
In your 30s? Start planning for life’s biggest moments
Looking to save? It’s a lot easier than you think. A host of apps make it possible to automatically set aside some money each week, which means you can build your savings without thinking about it. And, even if you start small—say, with $10 or $20 per week—getting in the saving habit will help you get ahead.
“The earlier you can get on autopilot with your savings, the sooner you’ll be able to make larger financial commitments,” says Ron A. Pac, a financial planner at Barnum Financial Group.