Typically, we’re talking about investing as much as you can afford in the beginning months of the year, although there are other ways to front-load, as we’ll discuss.
How amazing is it to be in a position to front-load large sums of money? If you’re considering a front-loading strategy, that means you can afford to invest thousands of dollars in a matter of weeks or months.
As a resident, you might not have had enough left over to invest even a few thousand dollars over the course of the year. Take advantage of your much higher salary and get your dollars working for you as soon as possible.
Once you’ve invested that money, it can’t be spent. Paying yourself first is a tried and true budgeting strategy that guarantees you will meet your investing goals.
All will be reconciled eventually; a tax deferred isn’t exactly a tax avoided, but at least my money will be working for me all year long, rather than resting in the hands of the government.