Step 4 – Start Long Term Savings
After you have 3-4 months of income saved in your ‘unexpected expenses’ account begin to look at using some of that money for long term savings and retirement. You can often begin an IRA (individual retirement account) with as little as $100 initial deposit.
As that starts to build value you can invest in mutual funds for as little as $1000. A good place to start is a fund that simply follows the S&P 500. It is rare to find any other funds that beat the S&P 500 over the long term. The chances of you picking a fund that beats it is such that it’s usually not worth the effort.
