As soon as your paycheck is deposited to your checking account and the bills start to come out, it can be quick before there is not much left to go around. In fact, most Americans live paycheck to paycheck, but this is a case where it would be nice to stay away from the norm. By making a few adjustments to your finances you can begin to see a few extra dollars add up by the end of the money and finally be able to get ahead and have savings to show for the hard work.
Take Advantage of Employer Contributions
While it may even be tens of years away until retirement that doesn’t mean that you can put saving on the back burner for now. In fact, the earlier you start saving the more it has to grow over time. Many employers will offer matching contributions to a 401k account up to a certain amount, say 6%, so it’s a good idea to work up to putting in the full amount in order to really maximize savings. This could add up to tens of thousands by the time you’re of retirement age.
Refinance Your Mortgage
With news that interest rates are creeping towards 4% for a steep decline that we haven’t seen in ages, now may be the time to refinance your mortgage, especially if you’re recently purchased a home when it was in the 5% range. Depending on how long you plan on being in the home, the couple thousand in closing costs may be worth spending in order to have a lower interest rate over the remainder of the mortgage terms. If you belong to a credit union, it’s a good place to check out that typically have competitive interest rates and minimal fees.
Make Your Home More Energy Efficient
Winter may be over, although we recently had a hit into the 20’s this past week after reaching 70 the previous week, but now is as good of time as ever to ensure your home is as energy efficient to keep out the cold and upcoming summer air. By sealing around doors and windows with a fresh bead of caulk, you can notice the furnace or air conditioner kick on less and less. Also, check any outlets that share exterior walls or even base molding that could be sealed better to trap any drafts.
Ditch Cable/Other Subscriptions
Now that the weather is improving it’s more reason to spend time outdoors, whether that’s taking the dog for a walk, going for a jog, or starting to do a little landscape to improve curb appeal. If you think about it, how many of the hundreds of channels that you pay for, do you actually watch? Most of what you do watch is probably on your DVR anyways to be able to fast forward through commercials. By cutting the cable cord and opting for a streaming service or two instead you can save at least a hundred dollars per month, and probably get in better shape at the same time.