Easy money
Doreen Christensen shares great ways to put more aside in 2018.
As this year comes to a close, let’s look ahead and make resolutions for positive changes in the new year.
I’m not suggesting losing weight, which is always at the top of the list. Let’s talk about gaining.
Adding to your nest egg should be a top priority, considering most Americans don’t save much. More than 57 percent have less than $1,000 in bank accounts, according to a GoBankingRates survey of 8,000 people. Worse, 39 percent had a balance of zero.
It doesn’t have to be difficult to put away a little each month, especially if you lightly trim expenses. There’s always some fat in there. Here are eight easy ways to save more in 2018.
Pay yourself first. This is the Golden Rule of savings. First, set a goal for the year. Next, open a separate savings account and add money as soon as you get paid, before you pay bills or do anything else. I’m a fan of Capital One 360 savings accounts because they’re fee-free with no minimum deposit required. There also is an automatic savings plan feature where you can set up regular transfers from other bank accounts. Set it and forget it. You’ll be amazed at how quickly the money grows.
Bank the tax cut: You’ll likely find more money in your paycheck when the $1.5 trillion tax overhaul goes into effect next year. Three-quarters of taxpayers are expected to get a cut next year, according to the nonpartisan Tax Policy Center. Put it away for a rainy day.
Contribute to a retirement plan. There is no time like the present to plan for the future. If your employer offers a 401(k) plan, you should be participating. If there is a company match, invest at least that much yourself. Contributions are deducted before taxes, so that’s another strong incentive to participate. You can invest up to $18,500 in 2018. The Internal Revenue Services has a helpful resource guide at IRS.gov/retirement -plans/401k-plans. If you already contribute, bump it up a few percentage points. Another excellent option is a Roth IRA, which lets your money grow tax-free. Contribute up to $5,500 or $6,500 if you’re 50 or over. Learn more at RothIRA.com.
Spend less on food. January is a good time to scrutinize your budget and see where the money goes. Aside from housing, food and fuel take the biggest bites out of monthly spending. A great place to trim the fat is by switching to a cheaper grocery store or shopping at multiple stores for sale items. I regularly shop at Aldi and have cut my monthly food bills by at least 50 percent. I also make monthly trips to Penn Dutch Meats to stock up on steak, chicken and seafood