1) Pay Close Attention To Your Finances
Ever read The Millionaire Next Door by Dr. Stanley? He clearly brings home the point that millionaires spend an average of 5-6 hours every week reviewing their financial plans and planning for the future, whilst those with less net worth tend to spend less than an hour a week reviewing their finances. The point? Focus on your finances. Make it a priority in your life and quite literally it will pay off in the long run. Pay attention to where your money is going. We suggest trying the free online app Mint to track your expenses and keep you on point with your savings goals.
2) Work On Your Financial Literacy Education
An easy, painless way to answer your burning financial questions is to subscribe to great personal finance blogs, such as the ones that we enjoy reading. Our friends over at MakingSenseOfCents and FinancialSamurai do an excellent job of providing weekly quick and painless explanations to your biggest financial questions.
3) Establish Attainable Goals To Eradicate Debt & Build Your Savings
Find setting aside any savings to be a struggle with all the bills and expenses that need to be paid monthly? Most banks and credit unions today provide vehicles to help you save for your future. Use that to your advantage. Set up an automatic monthly savings withdrawal into a separate savings account that will be used to pay off debt, build an emergency fund and save towards future goals. Take baby steps -set aside $25 or $50 a month… it doesn’t take much to get started and build a better future for you and your loved ones!
4) Minimize Your Taxes
Strive to keep your taxable income low by using deferred tax savings options such as your employer’s 401k and your personal IRA. Contributing to these accounts pre-tax not only lowers your initial income tax, but your tax savings continues in the years to come, as your dividends and capital gains in these accounts remain sheltered from taxation. It’s a win-win both now and in the future!
5) Stick To Low-Cost Investments
Invest in your future through low-cost investment vehicles such as Index Funds, low-cost mutual funds and ETFs. You can refer to Kiplinger or MorningStar to get quality analysis on the most current low-cost funds.
We hope you find this information helpful. Do you have any further suggestions for great ways to pay off your debt and save? We would love to hear your thoughts and comments.
-Cassandra & Shaun