Getting Started With Savings1 When you’re in your twenties, retirement seemsso abstract, it might as well be thousands of yearsaway. Maybe it feels something like that to you rightnow. Why save for something so many decades in thefuture, when every last dollar is accounted for in thehere and now? Saving for anything at all, in fact, mayfeel impossible.2 Getting started early for retirement is smart forthe same reasons you may want to put it off: time ison your side. If you set aside what you can now, themagic of compounding numbers — when you begin toearn interest on interest — can do more of the heavylifting over time. In other words, saving early mayresult in having to save less over the long run, whichwill take some pressure off as you’re juggling otherdemands that inevitably arise. Maybe those demandswill be children and all the money they require, orperhaps you’ll need some time off to care for an agingparent.3 And (mostly) nobody wants to work forever —the earlier you start saving, the sooner you can stopworking and dedicate more time to what’s meaningfulto you. The easiest way to save — for everything, really— is automating. When you have money automaticallyand regularly transferred to its destination, you don’thave to remember to do anything. That goes forpurely pleasurable financial goals as well, like savingfor a big trip. It’s empowering, and will bring you closerto the things that make you both happier and morefinancially secure. It will take some time and patience— but your future self will thank you.4 Before you begin saving, though, make sureyou have a plan to knock out any high-cost debt, likedebt on credit cards, where interest rates (around 22percent) far exceed the money you might earn wheninvesting your savings in the stock market over time(7 to 8 percent).5 Besides that, get a copy of your pay stub orcheck your direct deposit to get a sense of yourtake-home pay. (Freelancers should calculate theiraverage monthly income.) Then write down all of yourexpenses — rent, all insurance not already deductedfrom your paycheck, utilities, groceries, transportationcosts, car payments, mobile phone, student loans andany other debts.6 Moreover, creating a financial cushion — in theform of an emergency savings fund — can help youavoid turning to credit cards if you suddenly lose yourjob or hit a financial pothole, like covering a $1,000car repair.7 Financial planners suggest keeping three tosix months of your expenses in emergency savings(deposited in a high-yield online savings account,which offer the best rates). That may seem like a loftygoal when you’re living on a starting salary that barelycovers your bills. So start small, even if it’s saving $50a month — $83 a month will get you to $1,000 in ayear — and add more if and when you can afford it.Set up an automated plan that sweeps that amountfrom your checking account to your savings account.Then, don’t touch that money.8 Many people with student loan debt often wonderif they should focus on paying down those loans beforesaving for retirement. The short answer: probably not.But there’s a strong case to be made to both investand pay down your loans simultaneously, if you can.9 Besides retirement, you surely have other savingsgoals. Maybe you’re saving for a car, a wedding partyor a special trip. Since these goals have a shorter timehorizon than retirement, or something you’ll need toaccess within three years or less, you’ll want to takeless risk with this money. The easiest strategy is toautomatically transfer money into a high-yield onlinesavings account, say, monthly. With short-term goals,the amount you save is far more important than yourreturn.10 But if you need the money in three to 10 years —call that a medium-term goal — you may have moreoptions, depending on how flexible you can be withyour timing. Even if you don’t have large amounts tosave now, setting up the infrastructure to save is thehardest part — and as your earnings increase, it willbe much easier to save and invest more.BERNARD, T. S. Getting started with savings. The New York Times. Your money, May 17, 2024. Available at: https://www. nytimes.com/2024/05/17/your-money/saving-money.html. Retrieved on: July 12, 2024. Adapted. Getting Started With Savings1 When you’re in your twenties, retirement seemsso abstract, it might as well be thousands of yearsaway. Maybe it feels something like that to you rightnow. Why save for something so many decades in thefuture, when every last dollar is accounted for in thehere and now? Saving for anything at all, in fact, mayfeel impossible.2 Getting started early for retirement is smart forthe same reasons you may want to put it off: time ison your side. If you set aside what you can now, themagic of compounding numbers — when you begin toearn interest on interest — can do more of the heavylifting over time. In other words, saving early mayresult in having to save less over the long run, whichwill take some pressure off as you’re juggling otherdemands that inevitably arise. Maybe those demandswill be children and all the money they require, orperhaps you’ll need some time off to care for an agingparent.3 And (mostly) nobody wants to work forever —the earlier you start saving, the sooner you can stopworking and dedicate more time to what’s meaningfulto you. The easiest way to save — for everything, really— is automating. When you have money automaticallyand regularly transferred to its destination, you don’thave to remember to do anything. That goes forpurely pleasurable financial goals as well, like savingfor a big trip. It’s empowering, and will bring you closerto the things that make you both happier and morefinancially secure. It will take some time and patience— but your future self will thank you.4 Before you begin saving, though, make sureyou have a plan to knock out any high-cost debt, likedebt on credit cards, where interest rates (around 22percent) far exceed the money you might earn wheninvesting your savings in the stock market over time(7 to 8 percent).5 Besides that, get a copy of your pay stub orcheck your direct deposit to get a sense of yourtake-home pay. (Freelancers should calculate theiraverage monthly income.) Then write down all of yourexpenses — rent, all insurance not already deductedfrom your paycheck, utilities, groceries, transportationcosts, car payments, mobile phone, student loans andany other debts.6 Moreover, creating a financial cushion — in theform of an emergency savings fund — can help youavoid turning to credit cards if you suddenly lose yourjob or hit a financial pothole, like covering a $1,000car repair.7 Financial planners suggest keeping three tosix months of your expenses in emergency savings(deposited in a high-yield online savings account,which offer the best rates). That may seem like a loftygoal when you’re living on a starting salary that barelycovers your bills. So start small, even if it’s saving $50a month — $83 a month will get you to $1,000 in ayear — and add more if and when you can afford it.Set up an automated plan that sweeps that amountfrom your checking account to your savings account.Then, don’t touch that money.8 Many people with student loan debt often wonderif they should focus on paying down those loans beforesaving for retirement. The short answer: probably not.But there’s a strong case to be made to both investand pay down your loans simultaneously, if you can.9 Besides retirement, you surely have other savingsgoals. Maybe you’re saving for a car, a wedding partyor a special trip. Since these goals have a shorter timehorizon than retirement, or something you’ll need toaccess within three years or less, you’ll want to takeless risk with this money. The easiest strategy is toautomatically transfer money into a high-yield onlinesavings account, say, monthly. With short-term goals,the amount you save is far more important than yourreturn.10 But if you need the money in three to 10 years —call that a medium-term goal — you may have moreoptions, depending on how flexible you can be withyour timing. Even if you don’t have large amounts tosave now, setting up the infrastructure to save is thehardest part — and as your earnings increase, it willbe much easier to save and invest more.BERNARD, T. S. Getting started with savings. The New York Times. Your money, May 17, 2024. Available at: https://www. nytimes.com/2024/05/17/your-money/saving-money.html. Retrieved on: July 12, 2024. Adapted. In the excerpt of paragraph 6 “Moreover, creating a financial cushion […] can help you avoid turning to credit cards”, the word moreover indicates a(n)

In the excerpt of paragraph 6 “Moreover, creating a finan...

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Língua Inglesa Advérbios e conjunções | Adverbs and conjunctions

Ano: 2024

Prova: CESGRANRIO - BASA - Técnico Bancário - 2024

In the excerpt of paragraph 6 “Moreover, creating a financial cushion […] can help you avoid turning to credit cards”, the word moreover indicates a(n)

addition

conclusion

contrast

example

reason

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In the excerpt of paragraph 6 “Moreover, creating a financial cushion […] can help you ...