Personal finance tips: How to save on a low income, and more

Saving on a low income

Earning a small salary doesn't mean you can't build a sizable nest egg, said Emily Brandon at US News & World Report. Putting money in an IRA not only allows you to sock away money for retirement, but it also helps you reduce your tax bill. For instance, "a worker in the 15 percent tax bracket who contributes $500 to a traditional IRA will save $75 in federal income taxes." Low-income workers are also eligible for the saver's tax credit, which can be worth up to 50 percent of your retirement account contributions, depending on your salary. Roth IRAs are another good option, because they let you pay taxes on your contributions at a lower rate now instead of in the future, when a higher-paying job might place you in a higher tax bracket.

Mortgage mistakes to avoid

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

Failing to do all of your homework when you are securing a mortgage "can prove especially damaging" to your financial future, said Chris Birk at Credit.com. Before you sign on the dotted line, get a handle on your credit. Check your credit reports for errors and know where you stand, because a better credit score can help you win a better deal from your mortgage lender. Investigate whether you qualify for any federal, state, and local home-buying assistance programs, such as those for veterans or rural residents. And remember to conduct a home inspection. They "aren't mandatory," but you can use the results "as a pivot point to renegotiate with the seller or walk away from the deal" if there's a problem.

Firing your financial adviser

Breaking up is never easy, said Liz Moyer at The Wall Street Journal, even if it's just with your financial adviser. But sometimes, it's the best option for your portfolio. You might need new advice, for instance, "if your income and assets grow substantially or your family goes through major events such as a divorce." Your investments' performance should be another key benchmark: Ask how your portfolio is doing compared with the major indexes, and don't hesitate to demand that fees be disclosed in writing. If you do decide to fire your adviser, be a "savvy client" and take stock of your needs before hiring a new one. "Think hard about what else an adviser can do beyond choosing investments," such as helping you "prevent rash decisions" in a downturn or sticking to long-term savings goals.