When it comes to saving money, the biggest hurdle for most folks is the lack of available cash after paying all of the bills every month. Fortunately, this seemingly impossible problem is easily fixed by paying yourself first — not your creditors. One of the most effective ways to do this is by taking advantage of your employer’s automatic 401(k) paycheck deduction.
The bottom line: Whether you’re saving for retirement or big-ticket discretionary items, or building an emergency fund, paying yourself first makes the job easy. Best of all, once you get in the habit, you won’t even miss it.
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