#1. Increase Your 401k Contribution
Are you getting the full “match” amount from employer’s 401k plan? If not, you can change that immediately! That money instantly returns 100% because your company will match your contribution dollar for dollar. Even if your 401k investment portfolio loses 10% or so, you’ll still be way ahead.
The downside is that if you need that extra money, you’ll have to pay taxes and fees out the nose as a penalty for withdrawing your retirement funds early. And of course, if you’re already meeting your employer’s match, then this isn’t quite as attractive an option.
Still, putting more away now will certainly have benefits. The compound interest on just an extra $1,000 a year will be quite impressive after 20 or 30 years when it’s time to retire.