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lyudmila [28]
2 years ago
13

Your friend recently got a pay raise and plans on putting more money into his savings account. You know that he does not have an

y investments and advise him to open a 401k instead. He doesn't understand why he should do so. What do you tell him?
Social Studies
1 answer:
vitfil [10]2 years ago
5 0

Saving money when you have a stable job is working towards financial independence.

Explanation:

Financial independence is when a person is able to live off their life without worrying about paychecks to paychecks and when their stable income is more than their salary. Then a person does not need to rely on their job completely to meet expenses.

This means, that the investment a person has made can pay off and support their lifestyle even if they do not have a salary.

This is why it is important to start saving as soon as one starts to earn so as to work towards financial freedom.

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