4. Reinvest your dividends
Some stocks pay dividends. These are excess earnings the company passes on to shareholders, usually quarterly. How much you get depends on how the business has been doing and how many shares of its stock you own.
You have the option to cash out these dividends and spend them on whatever you like, but it’s often smarter to reinvest them. Many brokers enable you to do this automatically. These reinvested dividends will enable you to purchase more stock, which will in turn lead to more dividends, and it’ll continue to snowball over time.
You don’t have to try all of these suggestions. Even one or two can make a difference in how quickly your retirement savings grow. Think about which of them make the most sense for you and then try them out. If you’d like, keep track of how much more you’re saving because of these tips, to help you stay motivated to continue with them.
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