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7 Money-saving tricks that actually work – The Motley Fool

Only 64% of the workers in America have saved something for retirement according to the 2018 Pension Trust Survey – and a lot of 47% have saved less than $ 25,000, according to the previous year's survey. It is obvious that most of us have much more savings to do to avoid spending our past decades pointing out that the goals are meeting. Saving enough for retirement is easier said than done. There are always many demands on our limited funds. So, here are seven ways you can start saving more money. Imagine you have to pay $ 25,000 on your credit card, as good as people do. If you are charged a 20% interest rate, a typical interest rate, you will be over $ 5,000 annually for nothing! Socking away $ 5,000 annually on a retirement account that averages 8% annual growth would amount to nearly a quarter of a million dollars over 20 years &#821 1; that's what you forfeit if you are blamed for debt without planning to dig yourself. Getting out of debt is not always easy, but it can be done, it is much that is satisfactory to do, and it will give your financial health a powerful boost. Trick # 2: Automate Your Savings This strategy is quite easy. Your employer may allow you to get a certain amount that is transferred directly from your paycheck every pay period to a particular bank account or two. For example, you could have $ 400 sent…

Only 64% of the workers in America have saved something for retirement according to the 2018 Pension Trust Survey – and a lot of 47% have saved less than $ 25,000, according to the previous year’s survey. It is obvious that most of us have much more savings to do to avoid spending our past decades pointing out that the goals are meeting.

Saving enough for retirement is easier said than done. There are always many demands on our limited funds. So, here are seven ways you can start saving more money.

Imagine you have to pay $ 25,000 on your credit card, as good as people do. If you are charged a 20% interest rate, a typical interest rate, you will be over $ 5,000 annually for nothing! Socking away $ 5,000 annually on a retirement account that averages 8% annual growth would amount to nearly a quarter of a million dollars over 20 years &#821

1; that’s what you forfeit if you are blamed for debt without planning to dig yourself. Getting out of debt is not always easy, but it can be done, it is much that is satisfactory to do, and it will give your financial health a powerful boost.

Trick # 2: Automate Your Savings

This strategy is quite easy. Your employer may allow you to get a certain amount that is transferred directly from your paycheck every pay period to a particular bank account or two. For example, you could have $ 400 sent to a savings account each payment period, saving about $ 10,000 a year.

Utilizing automation with a workplace 401 (k) account is also effective. Preset amounts will automatically be transferred from your paycheck to your retirement account. Many companies sign up automatically in their 401 (k) applications, but set your grant number quite low. Increase your contribution so that it is a meaningful percentage, between 10% and 15% at least, and then aim to increase the proportion annually. (Don’t assume that 10% is sufficient. For many, it’s not – especially their savings are below what they should be.) If your employer offers a match, this strategy will pay even more.

Be sure to invest the money effectively too, remember that long-term dollars are likely to grow fastest in stocks. Consider a low-price index for the overall index index such as SPDR S & P 500 ETF (SPY), Vanguard Total Stock Market ETF (VTI) or Vanguard Total World Stock ETF (VT).

Trick no. 3: Sock away part of all your raises and tax refunds

It’s great to get regular increases at work and to get a tax refund check every year from Uncle Sam, but don’t waste your money on candy or park it in your bank account, where it can be used by mistake. Instead, target these funds directly to your retirement savings.

You may not be able to save any increase for decades, but aim to save as many extra money as possible. You will live under your funds and grow financially healthier.

Image Source: Getty Images.

Trick No. 4: Get – and stay healthy

This trick may not seem related to the economy, but it is: Getting healthy and being healthy means you probably spend less on health care in your life. It can amount to much dollars.

A 65-year-old couple retiring in 2019 spends an average of $ 285,000 in a pocket on healthcare, according to Fidelity. There are no guarantees, but you will be more likely to spend less on care if you take care of yourself.

Trick # 5: Take a side gig

That’s right – get another job. It may not sound appealing, but it doesn’t have to be terrible. Think about what things you are good at and what types of activities you like. You can make some extra money by driving to a shipping company on certain evenings or the weekend, or you can get extra money by tutoring, editing, coaching, advising, walking or boarding, pets, gardening, organizing, cooking, catering, or renting. out a room in your home via Airbnb.

A good page gig can earn you extra $ 1000 or more per month. Even if you only work as a cashier who earns $ 10 an hour for 10 hours a week, it’s an extra $ 5,000 or so per year that you can save in your retirement accounts to grow for you.

Trick # 6: Use Rewarding Credit Cards

If you are a regular credit card user, be sure to use the type of card that will serve you best. If you still pay debt, focus on balance transfer cards or low interest cards. But if you are financially healthy, favor cards that give rewards and / or money back.

There are cards that offer anywhere between 1% and 2% back on each purchase, and some paying up to 5% or 6% back on some purchases, e.g. at supermarkets or some retailers. If you spend $ 500 a month on Amazon.com and its subsidiary Whole Foods Market, you can earn 5% back on most purchases there, saving $ 250 a year. If you travel a lot, your best bet can be a card that provides travel and discounts.

Do not use this tip if you are struggling with credit card debt or are not disciplined enough to just pay what you can afford on credit cards. If you are in debt, focus on paying your debt, perhaps using a 0% intro-AP card or a balance transfer card.

Trick No. 7: Make Money Saving Phone Calls

If you spend just an hour or two phone calls to insurance companies every year or so, you can stop saving hundreds of dollars a year on your home insurance, car insurance, umbrella insurance, tenants insurance – even yours health insurance. Each insurer uses different formulas to determine their prices, and at any given time, you offer a different price for the same coverage. Also, remember that you can often save more by having two or more insurance policies with the same insurance company.

If you are saddled with high interest credit card debt, call your credit card company and ask for a lower rate. If you’ve been a loyal customer, you can get some relief – just to ask. Give your cable TV company a call every now and then to see if there is any new marketing that can reduce your monthly bill. It may well be one, especially if you let them know you’re considering other vendors.

Acting on some or all of these money-saving strategies can help overlap your retirement savings and set up your financial security. Many of them are also relatively smart.

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