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Strengthening Your Saving Potential

Create a Budget Creating a budget and following it gives you a clear idea of what you are actually spending. Consider using our budget worksheet to help you monitor your monthly spending.

Consolidate Your Debt Look for easy ways to consolidate your debt and you may be able to eliminate interest payments. Take the savings you would have spent on interest payments and contribute the extra money in your retirement account.

Be Wary of Depreciation When buying luxury items, be smart. For example, when buying a car, you can buy a new one and drive it for many years, or consider buying used. This will help you avoid depreciation expense.

Take Advantage of Tax Breaks Consider contributing to an IRA or Roth IRA before you file your taxes, and try to contribute the maximum amount to your retirement account. The government created tax breaks to encourage citizens to save for retirement, so take advantage and contribute.

Look for Low-Cost Alternatives Almost everyone can find a cheaper alternative for many of the activities they enjoy. Substitute generic items for name brands, use coupons, or “bargain shop.” Small lifestyle changes can have a big impact on your spending.

Invest a Bonus or Salary Raise Place a bonus or raise in your 401(k) plan. For example, if you get a 3 percent raise, increase your contributions by at least 2 percent. You will not notice the change in your take-home pay, but the increase can greatly impact your account balance.

Eliminate Small Expenses Look at all expenses you have paid in the last six months. Were they really necessary? Can you do anything to minimize fees and investment costs? A few dollars per expense may not seem like much, but over time, small expenses can really add up.

Click here to see how small changes can make a big difference!