The challenge for many of us can be knocking out our biggest debt to start the journey to the center of savings- let’s not forget those who currently aren’t savings or don’t feel that they can afford to save a slice of an already thinly spread paycheck?
Simple math suggests it’s better to get rid of debt before saving for retirement or adding to your emergency fund. But personal finance decisions rarely are so simple, and ditching debt first isn’t the right choice for everybody.
For example, it can mean not having an emergency fund to fall back on or setting you up to take on more debt any time an unexpected expense hits.
Never fear your LoanShop Blogger, Alicia is here to give you some tips and hints.
1: Follow spending clues to track savings..
Keeping a strict record of monthly spending by using apps like Mint © and Wally©.
Proven to be dependable aids when consolidating methods of tracking, saving, and strategizing. Collaborating with your bank accounts to store all your bills and receipts over the month and stacking them into categories like “utilities” and “groceries”.
Personal favorites like Wally © can aid in analyzing your budgets by categorizing receipts and scanning multiple bank accounts to identify your highest expenditures. You will most likely be surprised to learn how much you are spending on dining out or impulse purchases.
2: Shop, Compare and Repeat!
The art of comparative shopping is the heart of Loanshop, which beats to the desires of our customers. Our shopping engine collects lender information, including policies and interest rates, which are personally formulated to meet your needs and display the collective information on a single results page.
Shopping advice: Take a list with you to the grocery store and stick to it. This will help you from buying items you don’t need. The same standards can be applied to loan shopping. Understand your need and do not exceed.
3: WARNING, I’m prepared for everything
Emergency savings secrets are usually best kept in a savings or share account, despite the low-interest rates these accounts pay, plus they are easy to access when you need it. Like a best friend that stayed true through your rocky adolescent and controversial young adult years.
Remember, keep a high enough balance in the account to avoid monthly fees.
4: Let’s Commit! Love, your Savings Account
The easiest and most effective way to save is automatically. Even as little as $10 or $15 bi-weekly helps.
|Bi-Weekly Deposit||Yearly Savings|
|$10 -$15||$240 – $360|
|$20 – $30||$480 -$720|
|$40 -$60||$960 – $1,440|
5: Shopping with Change
For many people, that could add up to well over $100 a year, coins are legal tender, after all.
Use them to pay for a loaf of bread, a can of tomatoes, or any other small item. Counting out enough dimes and pennies to pay for a bunch of bananas means you’ll keep the greenbacks in your wallet.
6: Your interest- Forget high interest
You can save hundreds, perhaps thousands, of dollars a year by paying off these high-cost debts.
- Ask for lower interest rates
- Transfer debts to lower interest rate credit types
- Tackle your smallest loans first!
7: Have you searched your Income Tax Credit? -IRS
Many low- and moderate-income workers qualify, each year, for an Earned Income Tax Credit that can be over $1,000, and often more than $2,000.
IRS Publication 596 explains how to apply, or you can contact your local taxpayer assistance center for in-person help.
Then pay down debt and save with at least half of the money you receive from this credit.
8: Meet IDA – The Investment Development Account program
In return for attending financial education sessions and agreeing to save for a home, education, or business, you typically receive $2 for every $1 you save through an IDA program.
So, saving $25 each month could end up as $900 at the end of a year.
9: Match your retirement savings contributions
Some employers match up to 100 percent of your contributions. If you’re not contributing up to their match, you’re leaving money on the table.
Learn more about saving for retirement at work or on your own.
10: The gifts of Saving
Limit spending on birthdays and holidays, especially Christmas. Friends and family are more likely to appreciate a few well-chosen gifts than a more costly pile of gifts chosen thoughtlessly in a shopping mall spree.
Your friends at Loanshop
“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy” -Martin Luther King Jr.