My Tips for Saving Money in 3 Areas of Your Life
Tuesday, April 23, 2019, 6:00 AM | Leave Comment
How much money do you have saved up for retirement? If you are like a lot of people, then that question may have you shrugging your shoulders.
To many, it can be daunting to think about the amount of money they will have to save in order to retire, take a vacation, or pay for a house or car.
However, it’s not as difficult as you might think to save for the future. It all comes down to one simple tip: plan your purchases so you aren’t throwing money away. In other words, be smart about each financial decision you make. The cash you will save as a result can add up to something big.
This tip can be used while preparing for retirement, making big purchases, and thinking about your health.
Let’s dive into specifics:
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Saving for Retirement
One of the reasons that many of us save money is because we would like to retire someday. If you have any money put away, then you are ahead of the curve. In fact, 65 percent of people have little to nothing in their savings accounts. It is not only about storing funds for the future, but also about maximizing that savings potential. In some cases, your accounts can continue to make money in the background while you focus on other money-saving techniques.
One way to get more bang for your buck is with a high-interest savings account. The nice thing about most standard savings accounts is that when you add money, you make a few bucks in the form of interest. However, this rate is usually only as high as 1 percent, so if you saved $5,000, you would make $50 in interest. The good thing about a high-interest savings account is that this interest rate can be as high as 2.5 percent, which means you would be making $125, all because you decided to save your money. Best of all, the more money you add, the more you can make.
Another way to save for retirement is by investing in a retirement account such as an IRA or Roth IRA. As with the savings account, you can save more if you use smart methods such as trading forex — aka foreign exchange, or the trading of currencies instead of stocks — as you will eliminate fees paid to advisors and avoid taxes on trading gains. This type of trading gives you more options, and a professional advisor can give you tips that can help you sail your way to retirement while saving money in the process.
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Saving Money on Your Car and Home
Your car and your house will probably be two of the most expensive things you will ever buy, so why not be smart about those purchases so you can avoid unnecessary expenses and save money while you enjoy them? As we all know, car troubles can be very expensive, with the average repair cost coming in at around $500 to $600.
You can actively work to avoid breakdowns by keeping your vehicle in tip-top shape. Regularly checking your oil, paying attention to warning lights, and bringing your car in for annual check-ups are all essential. If you are on a tight budget and are faced with the need for repairs, you can take some steps to reduce the cost.
Even the way you drive can help you to save money. You can prolong your brake pads by avoiding hard stops and your engine life by not revving up your vehicle in cold weather. If you find yourself needing a new car, take time to research and compare pricing while trying to avoid unnecessary add-ons that pad the price. If you have enough money, opt to avoid a loan and pay in cash, and heavily consider a used car with a warranty so you can get the features you want at a lower price.
If you are considering buying a new house, start by consulting an experienced real estate agent and tell them your wants and needs. When you find what you want, get competing loan quotes from multiple lenders. If you are mechanically inclined, consider skipping a brand new house and find one that needs a little work. It will be less expensive, and you can modify it to your tastes. Once you are in your home, save money on your bills by using energy-efficient light bulbs, keeping your window coverings in shape, and unplugging electronics when not in use.
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Saving Money on Healthcare Costs
While we don’t like to think about facing health issues, they may be inevitable. If you have a major health scare, the last thing you will want to think about is the cost. To be prepared for the possibility of medical bills, try to live your life right by incorporating healthy personal habits and scheduling preventative procedures so you can stay in relatively good health.
Start this smart financial planning at the dentist. When it comes to your teeth, it is all about maintenance, so follow your dentist’s advice and go in for your check-ups every six months. These are usually covered by your dental insurance company. During these visits, dentists conduct cleanings, fluoride treatments, and oral cancer screenings, all of which can keep your teeth intact so you can avoid more expensive procedures such as root canals and periodontal surgery in the future.
This same advice goes for medical treatments as well. Take advantage of your yearly physical, so you can ensure that you are in good shape while taking care of small things that could become more expensive if not properly treated. Spending a little here and there on preventive care such as cholesterol tests, mammograms, colonoscopies, routine vaccinations, and flu shots can make a huge difference later on.
If you take medications, skip the brand names and opt for generic medicines, many of which can cost 95 percent less than their name-brand counterparts. All of these actions can not only save you money in the future, but they will give you peace of mind that you are living a healthy life.
When it comes to saving money for your future, you don’t have to be a millionaire. Instead, making smart decisions on a regular basis can help you save small amounts that can accumulate to make a significant impact when you really need it. Heed these tips and look forward to a bright future.
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