5 Ways to Save More Money in 2016

Filed under: retirement planning


JohnDubotsnewA new year means a fresh start, and most of us always have room for personal improvement. In particular, almost everyone can find ways to improve their budgets or save more for retirement. Try these five ways to save more money this year, and you will thank yourself one day when you retire!

Apply for a 0 percent interest credit card. If you’re like most people, you’re carrying a few thousand dollars in credit card debt. Apply for a 0 percent interest credit card, and transfer balances from high-interest accounts. You will save money on interest and pay off your debts faster.

Review your recurring expenses and look for discounts. Most of us will compare prices on a TV or a car before making a final selection, but we forget to comparison shop when it comes to our regular expenses that we pay every month! Take the time to compare auto and home insurance rates, cable and internet subscription prices, and the cost of other services or products you use regularly. You could save hundreds or even thousands of dollars by doing a little research.

Consider refinancing your mortgage. With mortgage rates remaining historically low, anyone with a higher-interest loan should at least consider refinancing their home. This isn’t a good plan for everyone, particularly if you plan to sell the home soon, but otherwise you could save thousands over the term of the loan. Remember to compare more than just interest rates, though; refinance fees can vary greatly from one bank to another.

Bolster your credit score. Having a higher credit score can help you access better deals on everything from insurance rates to cell phone plans and more. You will also earn much lower interest rates on auto loans, mortgages, and credit cards – saving you thousands of dollars over the years.

Take full advantage of tax breaks. When you think of saving for retirement, you picture yourself socking away money for the future. But when you utilize a qualified retirement plan such as a 401(k), you’re actually saving yourself money in the present as well. That’s because these contributions are tax deductible and can lower your overall income tax liability. Make sure to max out your contributions so that you will not only save more for retirement, but pay out less in taxes next spring. This year, the contribution limit for 401(k) account is $18,000, and you can contribute an additional $6,000 if you’re age 50 or older.

For more help with retirement plan contributions, or any other questions about financial planning, call Dubots Capital Management at (888) 605-8363 to schedule an appointment.