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Planning for the future can be an overwhelming task, especially if you have children to consider or a large estate to think about. Most people want to create a nice cushion for retirement, for their kids’ education, and for any unexpected expenses that come with owning a car or home, yet many Americans live paycheck to paycheck and have a hard time putting money aside for a rainy day.
Fortunately, there are several simple ways you can save money and begin planning for the future. Here are some of the best.
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Deny that credit
Credit cards may seem like a good idea, until you’re so deep in debt that you feel you’ll never get out of it. When shopping for a big purchase–such as an appliance or a piece of furniture–say no to the credit offer and come prepared to buy with cash. If you save up for those big items rather than relying on credit, you’ll save a ton of money and keep your credit score spotless.
Set goals
Sit down with your spouse or partner and work out some financial goals. If you mainly want to save for retirement, start a 401(k) plan or set up a separate savings account just for that. If you have kids and want to ensure their college is taken care of, open up an account in their name or consider setting up a 529 college savings account, which must be used for school funds but will give you tax breaks.
Think outside the box
Saving money can sometimes mean getting creative. Think outside the box about ways you can save money every month, from carpooling to keeping up the maintenance on your car–including making sure your tires are filled to the correct amount–and use that savings to start a little nest egg. You can also look around the house to find ways to save, such as installing a programmable thermostat and turning your ceiling fans to run in the opposite direction so that heat from the top of your home will be pushed down into the living areas. Saving money on your utility bills is a double bonus!
Another great way to save a little extra money is to participate in the sharing economy. You can drive part-time for Uber; make a little extra money as a dog walker; rent out your house or apartment through AirBnB; or offer your services through an app like TaskRabbit.
Not only can you expand your skillset a bit, but you can pad your savings account.
Invest in yourself
When thinking about your family’s future and financial stability, it can be daunting when you are stuck in your career. One solution is to reinvest in your education and seek out an MBA. This can lead to a great increase in your salary, a host of new opportunities, and financial peace of mind for your family. You also get the added ability to grow individually, increase your worldview, and inspire not only your co-workers but your family as well.
Consider downsizing
If you live in a large home and your kids are grown up and moved out, consider downsizing by moving into a smaller space. Big houses can hike up the utility bills in summer and winter and can be hazardous if you have mobility issues during your senior years. Plus, you could make quite a bit of money on the sale of your home, especially if you work with a talented and experienced real estate professional from The Scislow Group.
If you opt to downsize, you might realize you have more belongings than you need, especially if you are moving into a smaller space. Pick out things you no longer use or don’t want anymore and you can donate these items to places like Goodwill or the Salvation Army and get a tax write-off, or sell them on eBay or Craigslist if you know they are worth something.
Save those coupons
It might sound like a very small thing, but clipping coupons can be extremely helpful when you’re trying to save money, especially if you use them in conjunction with a store’s sales. Grab up those weekly ads and pair your coupons with the deals for double the savings.
When looking ahead to the future, it’s never too early to start. By staying debt free, looking for deals or using coupons, setting aside money when you can, improving your career prospects, or looking for cost-cutting measures at home, you are sure to give your growing nest egg a boost.