If you want to save for retirement stay away from savings accounts. I do like the 6-12 months expenses in a high yield savings account that’s good advice. A lot of this depends on how old you are. If you’re just starting in your early 20’s get the apps like digit, this will help you save for different things but the money doesn’t yield any interest really. The app called Betterment let’s you open IRA accounts and you can set up automatic contributions. You can also decide which how your money is allocated depending on your risk profile, if you’re young you want to be more risky because you have a long time until retirement. If you’re older maybe less risky. But the key is to be consistent and keep up never stop contributing to your future. Definitely if you have an employer that has a 401k use it! And if they have a match max it out and go beyond it just to help it grow. If you have access to an HSA account that is a really great way to help save for your health care needs now and for the future and you can use that when you retire. 401k’s and HSA’s through your employer are great because that money is tax free which means you’re keeping MORE of YOUR money. I did the math in my pre-tax contributions and found out I get to keep like $250 more each paycheck that would have gone to taxes by putting it into a 401k and HSA.
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CC debt can be good to help boost your credit as well as some auto loans for people who are just starting out with no credit. You can do a secured card where you give the bank $200 and then they give you a credit card for $200 and then as you use it responsibly they up your limit and eventually you can get your money back. Your credit score is factored off of how much of your credit balance you use. You want to carry a balance of less than 15% of your CC availability to get the best rating out of it that you can. So don’t spend you limit and make minimum payments that actually hurts your credit. You only pay interest on your balance! So if you spend $50 on gas for the month in your CC but pay it off before your bill is due, you don’t accrue interest and you use your CC which is good for your credit. Vehicle loans can also help build credit but you shouldn’t run out and buy a $20,000 car with a $20,000 loan. Save 70% of the car you want and then finance the remaining 30% it will help you have smaller monthly payments and help you pay it off faster and still have equity in the car. This will also help your credit. I’m 27 and have a 760 credit score because I pay off my credit cards every month and am never late on payments
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