As
we settle into the New Year, it’s the perfect time to think about self improvement.
Losing a few pounds, reaching a personal goal and getting the financial house
in order are all great ideas. If you’re looking to reach a financial goal in
the next few years, there are many “financial diets” you can adopt to better
manage your household budget and allocate more of your income for savings. Consider
doing a few – or all – of the following things to help you.
Keep a money journal. Just like dieters often begin by
tracking what they consume each day, try to make a habit of tracking and
recording where your money really goes each day. Write down what you spend each
day on gas, coffee, food, clothing and other essential and discretionary
expenses. Once you have weekly averages for all of your expenses, you can
identify areas where you can start saving here and there by making small, easy adjustments
– or bigger changes where you may be largely overspending.
Slim down your utility
costs. When was the
last time you negotiated better rates with your satellite or cable company or
cell phone provider? Pick up the phone and start dialing for possible savings.
Even your local gas and electric companies offer discounts designed to help you
save money each month. For example, installing a programmable thermostat to control
your air conditioner and furnace will quickly pay for itself and help you save
on utility costs well into the future.
Count dollars like calories. You know how easy it is to spend $10.
So put $3,650 back in your pocket each year by eliminating $10 per day from
your daily expenses. You may buy specialty lattes or bottled water or soda, and
eat out more frequently than you even imagine. Keep track of your success and
congratulate yourself every so often by indulging in something you’ve cut back
on.
Dine out less
frequently. Many of
us grab lunch and dinner out far more than we realize. Take stock of you and
your family’s eating habits and consider having friends over for a potluck or
appetizers instead. Eliminating one or two dining out events per week can
easily save you $80 per month. That’s nearly $1,000 per year that you can put
to good use.
Downsize your shopping
trips. As the U.S.
economy yearns for more consumer spending, the availability of discounts and
coupons is prevalent. Register to receive emails from discount aggregators to track
and save on the products and services you normally buy. Before making a
purchase, search online for discount codes and special offers. If you’re a
teacher, veteran or active military, you may qualify for special discounts at
some of the stores where you shop regularly. Just ask the store clerk when
making your purchase.
Take care of yourself. The average trip to urgent care costs
about $100, while the average cost for an emergency room visit can exceed $500.
There are, of course, appropriate times to use both kinds of care, but it’s
important to understand where to go for health services. Also, remember to take
full advantage of the best employer-sponsored health care plan for you, and consider
if a flexible spending account or health savings account is a better option.
There
are many ways to put your budget on a diet and create opportunities to save more
for your future. If you’re unsure about how to start, consider working with a
professional financial advisor. He or she can help you establish a sustainable financial
plan and achieve your New Year’s financial goals.
###
Renée A. Hanson, CFP®, CEP®, CDFA™,
CFS, is a private wealth advisor with Hanson, Ayala & Associates, a private
wealth advisory practice of Ameriprise Financial Services, Inc. Her passion is
in helping women achieve their dreams and financial goals, regardless of life’s
many obstacles. Renée is licensed/registered to do business with U.S. residents
only in the states of AZ, CA, CO, GA, IA, IL, MI, MN, MT, NH, NJ, NM, NY, OH,
PA, SC, TX, VA, WA, WI. Please visit: www.reneehanson.com to learn more.
Brokerage, investment and financial
advisory services are made available through Ameriprise Financial Services,
Inc. Member FINRA and SIPC. Some products and services may not be available in
all jurisdictions or to all clients.
Ameriprise Financial
does not provide tax or legal advice. Consult your tax advisor or attorney.
© 2013
Ameriprise Financial, Inc. All rights reserved. File
# 149484
No comments:
Post a Comment