One of my resolutions is to improve my finances by increasing my savings this year. Can you suggest some concrete tips on how to save more?
nathan see, financial analyst and investment, plaza advisors group
Consistency is key when it comes to saving. Doing something once will not make much of an impact on your long-term outlook, but small actions done repeatedly over time add up to making a big difference.
Develop a habit of bringing your lunch to work, carrying a refillable water bottle, or carpooling when possible. You also can save more by automating some of the processes so they are done on a regular basis. For example, set up a monthly transfer from a checking account into a savings or investment account. Set up automatic payments for your bills; late fees are a big waste. Get checking account alerts on your phone, or opt out of overdraft protection so you don’t pay steep fees for overdrafting your accounts.
Always pay off your credit card statements to avoid paying interest, and keep track of your expenses to make sure you are living within your means. There are many great apps and online tools you can use to do this. Finally, set attainable goals and keep them in mind when debating over a purchase. This can help curb impulse spending.
julie gampp, vice president of investments, member sipc & nyse, stifel
Finding ways to save can be difficult because most people don’t want to give up the things they love. But small changes in spending sometimes can go unnoticed. For example, if dining out is your thing, an effective way of keeping the cost down is to have a glass of wine and a small appetizer at home first. It will keep down your bar tab and you won’t arrive at the restaurant famished. Also, if you’re dining with a partner, consider splitting your entrée. Many restaurants serve portions large enough for two.
Social media has made selling your gently used items much easier than the old-fashioned garage sale. Many neighborhoods have a Facebook page where you can swap or sell items within your community. Donating your items to a favorite charity and receiving an income tax deduction can be more valuable than people realize, as well. Not only are you able to help someone in need, but depending on your tax situation, it could mean cash in your pocket.
Take time to re-evaluate your cable/satellite packages. Many people only watch a few programs but pay for large channel packages. Do you have a connection to a TV that is used rarely? It could be canceled for additional monthly savings. Also, with internet streaming systems like Apple TV, Amazon Fire Stick, Netflix or Roku, you may be able to save quite a bit of money there as well.
