The best place to auto- deposit your first Hot Flash Stash of Cash is in a retirement account. If you have a retirement account at work, start to auto deposit to it. These type of retirement accounts are often called a 401(k) or a 403(b) accounts.
Why increase your deposits to that retirement account?
1. It is an ideal Hot Flash Stash of Cash. It is a separate account, with your name on it. The money deposited there does not go into your checking account for daily spending.. It is earmarked for your future.
2. You get a big tax break if you put your money into your retirement account. The $100 you deposit every 2 weeks, or the $1,000 (or more) that you add into your retirement account (every year) is subtracted from your Taxable Income. In other words, it is taken out of your taxable income before the government decides how much money you earned and will tax you for. So, you don’t pay taxes on that money during the year you earn it.
Want to hear some young girls talk about this in a video? Well them click here
3. Another reason: you build your Hot Flash Stash of Cash, and you may get “free money” besides. Your company may give you a matching contribution for the money you put into your retirement account at work. (You can usually get up to 3% of your salary matched and added into the account with your name on it.) That is money in addition to your salary or wages. Nice, huh.
If you are still not convinced, watch this video on The Benefits of an Employer Match
4. So call your Human Resources office, or get on the website at work and direct your company to put a larger percentage of your paycheck into your retirement account at work.