With so much focus on getting through our everyday hectic life we hope to have more money coming in than going out each month so we don’t fall behind. That is probably as far out as your financial thoughts go, but in order to really get ahead, it’s time to start thinking beyond that. By giving yourself a cushion, really starting to focus on expenses, while capitalizing on free money, all while saving for retirement should start to be a priority, and it’s a habit you’ll have to have to start getting used to if you haven’t already.
Build an Emergency Fund
You never know what life will throw at you, so it’s good to be as prepared as you can be in order to have the available funds needed if you have a large unexpected expense instead of putting on a credit card and risk going into debt. By saving up a few months’ worth of reserves, you can protect yourself if you receive a vet or medical bill, a necessary auto repair, or even provide a little protection if you lose your job and need a couple months to get by before starting a new one.
Reduce Expenses
When it comes to saving money it really comes down to reducing the amount of money that goes out every month, both in necessary purchases like bills, and unnecessary impulse purchases. Cable could be a monthly utility bill that could be avoided, and by opting for a streaming service for around $10 a month instead, you can easily save over a hundred dollars a month. Another good place to reduce monthly expenses such as your food budget, by avoiding paying top dollar for going out to eat, you can replace with going grocery shopping and prepare your meals at home, and probably even save on the waistline as well with healthier options than eating out.
Focus on Retirement
Although it may be decades before you finally are ready to call it a career, but the earlier you can start saving the more it can have time to add up and earn compound interest by the time you are of retirement age. These days, especially in the future, we can’t be certain to rely on Social Security, so the more you can save up throughout your working year, the more you will have to enjoy the life experiences when you do retire.
Earn Easy Money
There is nothing better than free money, so why leave any on the table? It may be time to start making every purchase with a credit card, as you can earn points or even cashback on the purchases that you were going to make anyways. This is like making money on the side for purchases that you would make regardless. Adding up to even more than credit card rewards is where you need to check on company matching retirement contributions, which if not taking advantage of the full match, could be missing out on thousands of dollars a year, adding up to tens of thousands over the course of your working career, which could give you what you need to live off in retirement.