Get in shape for 2015 by saving more
Posted: January 13, 2015
A good money goal for 2015? Save moreSource: http://www.cuna.org/Stay-Informed/News-Now/Consumer/A-good-money-goal-for-2015--Save-more/
- Emphasize savings. If you're saving 8% of your income every year, saving just one percentage point more increases your overall annual savings by 12.5%. A good place to start is raises. If you received a raise, instead of increasing your spending, increase your savings--whether it's for retirement, education, or your emergency savings account;
- Reexamine your investments. Do you have too much invested in stocks? It can be tempting when the stock market is doing well to expose your portfolio to more risk. Make sure you have and maintain the right mix for your goals and age; and
- Max out your tax-advantaged accounts. Taking full advantage of your dependent care, health savings and employer-provided pretax transit accounts is an easy way to save money each year. If you can afford it, you can compound your savings by waiting to be reimbursed until the end of the year, and then investing that money in an IRA or 529 college savings account. Also, take a look at your debt levels. As the economy recovers and you feel more financially secure, it can be tempting to take on more debt and assume you always can pay it off later. But when it comes to your finances, it's good to remember the maxim "hope for the best but plan for the worst."