As a growing number of Americans are becoming concerned with planning for retirement, experts are suggesting that even the smallest raise should be spent wisely, or not at all, according to The San Diego Union-Tribune.
If an individual does not have high interest debt, experts suggest first looking at what they have in emergency funds. The Financial Security Index taken by Bankrate.com has reported that one in four Americans have no emergency savings at all. If an accident were to occur, 22 percent of individuals believe their savings will only cover three months worth of expenses.
People that are self-employed, or living on one income, may want to have a larger amount of money than those that have a more reliable source of financial liquidity, the Union-Tribune reports.
In order to save money during the recession many people reduced the amount of life insurance coverage they had. If this is the case experts suggest reviewing that coverage and possibly reinvesting in it.
For those people that feel they have the proper amount of insurance coverage, increasing a 401(k) contribution or investing in a Roth IRA may be a sound option, according to the media outlet.