Sat Nov 30 2024, by Tyler Gardner

I'm Tyler, a former financial advisor and portfolio manager, and now I create financial content for free so that you don’t have to pay for it.

1. The Real Cost of Saving

Remember, you do not get to keep your entire paycheck. I know, it sucks. So to save just $1, you most likely had to earn between $1.25 and $1.50, depending on your tax rate. Federal, state, payroll, you name it. They're getting paid before you are.

2. The Impact of Inflation

Now let's say that $1 does make its way into your savings account. Well, we’re just getting started because inflation just hit us again this year at 3%. So now your $1.50 of earned income is worth even less than a dollar in a traditional savings account.

3. Escape the Paycheck-to-Paycheck Cycle

If you’re tired of living paycheck to paycheck, wondering why your money is not keeping up with inflation and taxes, it’s because you’ve been taught to save your money, and that is the single worst thing you can do with your money.

4. Invest Smartly

So starting today, commit to putting between 1% to 10% of your paycheck into a taxable brokerage account or a tax-advantaged retirement account. Pay the government less, pay yourself more, and for every dollar earned and invested in your 30s, know that now you'll most likely have $15 waiting for you in retirement.

If any of this is helpful, like and follow, and I'll keep trying to get you one step closer to where you need to be.

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