this post was submitted on 22 Dec 2024
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[–] vk6flab@lemmy.radio 18 points 3 days ago (3 children)

Automatically transfer all excess funds into a separate account with penalties for withdrawal.

Money sitting on a savings account loses value. Buy stocks, indexes or ETFs with the money instead. The penalty for getting the money back is capital gains tax.

[–] TIN@feddit.uk 2 points 3 days ago

This was always my approach - as soon as you get a pay rise, increase the amount going to savings.

Never had it, don't miss it.

As for how long to leave it in savings, totally different question and depends on what you want from life.

[–] johsny@lemmy.world 1 points 3 days ago

This is the correct way to do it.