If shopping and spending are one of your past times, this article may be for you. First, nothing is wrong with being a steady spender or a shopaholic; if the bills are paid, you’re saving for retirement and have a fully-funded emergency fund. After all, you work hard for your money, and you should be able to enjoy it too! We’ve put together some clever ways to help boost your savings even if you are a steady spender or a shopaholic by using these tips as a guide:
Use automation to save- You can easily save for retirement through payroll deduction into your employer-sponsored retirement plan. It’s easy to do the same into a savings account either through payroll deduction or your bank’s automation to deposit from your checking to savings account each payday. Last, automate after-tax contributions to a Roth IRA each month from your checking account to help ensure you’re on track for retirement.
Create shopping lists- Creating a shopping list helps in a few ways. A shopping list helps keep you on track so you don’t overspend and helps ensure you don’t have to run out to get items you forgot that might cost you more at a convenience store.
Cancel unused memberships and subscriptions- If you have subscriptions for streaming services or gym memberships you don’t use, cancel them. Even if they are small amounts, they can add up over time. Monitor utility bills- With this year’s energy costs high, monitoring your heat and air conditioning temperature can save on your electric and gas bills. Another often-overlooked utility is a water heater that can cost you over time if turned up high. The safe and optimal temperature is 120 degrees to 130 degrees and optimal for your wallet.
Don’t forget internet and cable as part of your utility budget. If you have internet or cable packages higher than you’d prefer, shop around for another provider’s package. Phone, cable, and internet are often bundled together but may not be the best package if separately each service costs you less. With more people having cell phones, paying for a phone line may be wasted money. Use coupons and shop sales- Coupons can save you money on items that you usually purchase anyway or are new items manufacturers want you to try. Coupons are easy to redeem through apps from your favorite stores. Shopping for sale items, last year’s model, or open box items can save hundreds of dollars on consumer goods that tend to be seasonally priced.
Refinance- With interest rates still relatively low but expected to increase, refinancing your mortgage or auto loan before rates increase can save you hundreds of dollars over time.
Budget for spending and shopping- If you enjoy spending and shopping, make it part of your monthly budget, and stick to the dollar amount you budgeted.
Need help creating a saving and spending plan?
Your financial professional can help. While these tips can help you save dollars and boost your savings without changing your spending or shopaholic lifestyle, a financial plan can help you work towards financial independence in retirement.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
This article was prepared by Fresh Finance.
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