After you have paid off an expense, such as your car or home equity loan, continue to set aside that amount each month and invest or save (rather than spend) it.
Consider a dollar cost averaging account. These accounts are offered by a number of investment firms and allow you to make regular monthly investments of as little of $25. Dollar cost averaging is a great way to invest because it allows you to buy more shares of your favorite stocks when prices are low and fewer when prices are high. Fees for this type of account are generally very low and investments can build quickly.
Make automatic contributions to a savings account that is off limits for whims and everyday expenses. If the money is taken out automatically you will learn not to miss it. In fact, you will become quite comforted in the knowledge of your growing nest egg.
Consider purchasing a life insurance policy that build cash value. You may be able to access that cash in the event of an emergency.
If you have trouble maintaining a savings plan consider changing your withholding allowance to zero or increasing the amount of money that is deducted from your check each pay period. On the down side you don't benefit from any interest accrued, but on the plus side your savings are safe from impulse raids. You will then have the opportunity to save up enough for a CD even without the discipline.
The earlier you begin your savings plan the more time you have to take advantage of compounded interest and market fluctuations. That doesn't mean it's too late to start if you haven't done so already. It's never too late to start saving. Just adjust your plan accordingly. Choose your savings vehicle with time, your risk tolerance and savings goals in mind. You will afford yourself peace of mind in knowing that you can handle trickles or downpours as they come along.
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