7 Ways to Increase Your Savings Rate

As investors looking for financial success and even financial independence, there are really only two levers we can control.

One is fees, and much has been made about the low-cost index fund approach to investing.

The other is your savings rate. The more you put away, the less you depend on the market return (over which you have zero control) to do the heavy lifting for you.

7 Ways to Increase Your Savings Rate 

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The easiest way to boost that savings rate is to not have to increase it at all. Upon residency graduation, most doctors are quite used to living on $50,000 per year.

#1 Don’t Ever Grow into Your Income

One of the best ways to increase that savings rate is to use tax-deferred retirement accounts like 401(k)s, profit-sharing plans, and defined-benefit plans.

#2 Minimize Taxes by Maximizing Tax-Deferred Retirement Accounts

Many investing authors like to talk about “the latte factor“—which basically says if you’d just skip your $5 latte every day, you’d be rich. While every little bit helps, you’re likely to get a lot bigger bang for your buck by watching the big things.

#3 Watch the Big Items

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