Saving money sounds easy enough - just spend less. However, finding areas for actual conservation can be a problem. If you are looking for ways to make the most of your hard-earned dollars, these eight ideas are a good place to start:
1. Analyze withholding your federal income tax. Make sure your federal withholding is appropriate for your income and family size. If you pay too little throughout the year, you can pay money at tax time. On the other hand, too much money withheld from each paycheck means that Uncle Sam gets to your money to work a year after you. Regardless, it is important that you save throughout the year to manage these expenses.
2. Lower insurance rates. The next time your home and home insurance policies are updated, visit the store to see if you can replace your coverage with less. Savings can be substantial.
3. Refinance your mortgage. As a rule, it makes sense to refinance if you can reduce your interest rate by at least two percent and plan to stay in your house long enough to realize the savings after you consider the costs of closing. Keep in mind that most of the payment in the early years is paid off with interest on the loan, not the principal. So, if you had a mortgage for some time, refinancing might not be the best choice. An online calculator or reputable mortgage professional can help you decide.
4. Take a bus or car pool. The cost of gas, wear on your car, paid and paid parking can quickly take shape. If you usually make daily trips on your car alone, pay for the public transport options in your area. As a rule, it is much cheaper than driving. Or think about starting a carpool, so you can share expenses.
5. Consider signing a Health Saving Account (HSA) the next time open registration begins. If you do not need a higher level of coverage, HSA may be a good option for you. HSA is an economical savings account with tax benefits that you can use to pay for qualified medical expenses if you are registered with a high-income health plan (HDHP). You - or your employer - can deposit pre-tax money into your HSA. Regardless of who pledges it, all the money in the account is right behind you. Even better? Your unused HSA balance sheet jumps from one year to another. So, if you do not use it, you will not lose it.
6. Conduct an energy audit of your home. This can help you determine which improvements will save you more money and energy. For more information on professional audits — or advice on how to do it yourself, if you are comfortable — visit energy.gov.
7. Request a discount on a credit card. If you have a substantial balance, call the credit card company and ask for a discount. If they do not comply with your request, get a zero percent balance transfer to another card you already have, but make sure that your tariff will not be higher when it is reset. In addition, remember that opening a new card may adversely affect your credit rating. It can also be a good idea to shop on your credit card until you improve your financial health.
8. Give something. Do you pick up daily coffee or soda from a specialty store or a store of goods on the way to or from work? If so, consider dropping it. I think that giving up the habit of $ 3.50 a day will not matter? This will. If you work 250 days a year, you can save $ 875 this year.
When you are learning ways to save money, think about consulting a financial advisor.
A counselor can help you create a financial strategy to increase the effectiveness of your dollars and keep you on track to achieve your financial goals.
