Savings Tips
How you go about saving can have a big impact on your life, both now and later on down the line. The average American household has just under $16,500 in savings. But while that is true, some have more saved than most, and the median amount saved is just $4,830. No matter what you have saved, as time goes by, the amount you have saved is going to be even more important.
Here are some tips for saving more, so that you can reach your goals faster. And you’ll have more peace of mind when the time comes to retire:
1. Simplify your life
It’s easy to get caught up in the desire for new gadgets and things. We’re constantly being tempted, and with credit so available, it doesn’t even seem like a stretch at the time. But the more you buy, the more you have committed to each month. Review your budget for each month as well as any annual costs, and see if there’s anything you can do without. Simplifying things and taking away any unnecessary costs will help you free up money that you will be able to save.
2. Buy used
Transportation is a necessary expense unless you live so close to your job you can walk or cycle there, or if you work from home. Millions of Americans own at least one car, and the average amount borrowed for a new car is $31,099, working out to a monthly payment of $515.
In comparison, the average used car loan is $21,375 and just $398 a month. Some manufacturers sell used cars with a warranty still attached to them. If you can buy a car for cash and keep it in good condition, you’ll save even more. It depends on how many miles you need to drive and how much the car will cost to repair when it needs repair.
It isn’t just cars that can be bought for less if you buy used. Refurbished laptops can be purchased directly from the manufacturer and from several sites online. Faulty parts will have been replaced, and the item is as good as new, just a whole lot cheaper.
3. Rent fashion
Instead of buying very expensive designer dresses or items, there are places you can rent them for a fraction of the cost of buying them. Rent the Runway is an online site you should check out. If you’re only going to wear something once or twice, it makes sense to rent it for the night rather than spend money on something that will just sit in your closet for years.
Saving doesn’t always seem easy, but these three tips should help you free up quite a bit of extra money without impacting your daily life too much. If anything, it will make your life easier.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.