How to plan for three months salary
Bringing home three times your salary in a month can boost your finances, according to winnie sunco-founder and chief executive officer of Sun Group Wealth Partners, based in Irvine, California, and a member of CNBC Advisory Council.
“If you have credit card debt, that needs to be paid off first,” she advises. As daily expenses continue to rise, Americans are saddled with more debt. At the same time, the annual percentage is also increasing, making it more expensive to carry balance.
Then consider putting an extra paycheck into long-term savings, such as a long-term savings account. Roth . Individual Retirement Account, said Sun. Roth has the added advantage of allowing account holders to withdraw their contributions at any time without being taxed or penalized.
Even if you decide to cash out “for a vacation or something fun, that’s okay – as long as some of it is used to save money,” Sun added.
“Now could be a really good time to get that extra cash, given the volatility of the economy,” said CFP Douglas Boneparth, president of Bone Fide Wealth in New York. He is also a member of CNBC Advisory Council.
“If that is of interest, it’s a great opportunity to continue investing, whether it’s adding to your portfolio or increasing your retirement contributions,” he says.
Contributing to the traditional workplace 401(k) The plan, unlike a Roth IRA or 401(k), is pre-tax so the more you contribute, the lower your taxable income. Furthermore, companies often offer an employer match, essentially free money for your retirement savings goals.
