There's really only one way to get free money
for investing: through your 401(k) or other employer-sponsored
retirement plan, such as 403(b), SIMPLE,
or Thrift plan. Depending on where you work, you might be eligible
to receive a matching
contribution.
That means your employer adds money
to your retirement account in proportion to the amount you contributed
— in the case of a 401(k), often up to 6% of your salary.
At some point in your career, you may be
awarded extra money at work in the form of a seasonal cash bonus,
or a gift of stock or stock options. If you're trying to come
up with more money to invest, make it a policy to put any bonus
you're awarded in an investment account.
One thing to keep in mind
when you're creating a financial plan is that you should include an
emergency fund on your list of financial goals. Most experts recommend
that you save three to six months' worth of income in an easily accessible
savings account. Having the cash on hand will protect you if you lose
your job suddenly, have urgent medical expenses to cover, or your
car just quits. Cushioning yourself with an emergency fund should
be a priority.
