Pay down student loans
“You’ll usually save the most money by paying down the loan with the highest interest rate first. The faster you pay down the loan, the less interest you’ll pay overall. Plus, if you’re paying more than your usual minimum due, your loan provider may consider your loan ‘Paid Ahead.’ This means you will have already covered the minimum due for future months, reduces your balance ahead of schedule, and gives you flexibility on your payment schedule if unexpected expenses come up in the future.” —Joe DePaulo, CEO and co-founder of College Ave Student Loans. Read up on these money-saving tips from people who are great at saving.
Save for retirement
“It sounds boring, but the payoff is big. I certainly want to retire someday, so the more I can save now, the greater the chance that I’ll be able to have enough for a comfortable retirement. Plus, contributing to a retirement account helps me save money on taxes today. As a self-employed worker, I can deduct my retirement contributions on my tax return.” —Cameron Huddleston, award-winning personal finance journalist and the Life + Money columnist for GOBankingRates.com. Here’s how to retire early from people who have successfully done it.
A little bit of this, a little bit of that
“I may go against the grain here, but I would spend at least half of it on travel. That’s my passion and if I could, I’d be on a plane going somewhere exotic every other month! As for the rest, I’d save it in my retirement account because it reduces my taxable income. Not only does it make a big difference, I know I’m doing the right and responsible thing for my future.” —Erica J. Sandberg, personal finance expert. This is what your dream vacation reveals about your personality.