12 Tips on Saving Money
How to cut corners and save cash
By Adam Wolf CPA/PFS, CFP®
Everyone wants financial freedom. Here are 12 ways to help save money now and for the future:
Pay your self first – Every month put away a portion of income for savings. Use it for emergencies or retirement.
Reduce credit card debt – Every $1K in credit card debt balance costs approximately $200/year in interest, assuming a 20 percent interest rate.
Review your life insurance – Life insurance policies have the ability to provide some long-term care/living benefits. Older policies may need a second look. Your needs may have changed and a new policy may be more advantageous.
Purchase long-term care insurance – According to a recent study, 70 percent of people over age 65 will need some type of long-term care in the future. Covering yourself now can protect you in the future from health care expenses.
Choose generic drugs instead of name brands – Generic drugs cost you and the health insurance company less. If generics are available, this is an easy choice.
Pick health insurance plan that fits your life – Lower premium plans may save you money now, but may cost you more later. Higher premium plans cost more in monthly premiums but may mean less overall out of your pocket.
Avoid fast start-ups and stops when driving – Over time, this saves hundreds of dollars on lower gas and maintenance costs.
Shop auto insurance – Annual review of your auto insurance is smart. My new broker recently saved me $400/year in premiums with a different company and identical coverage.
Update home insurance – If you have wind insurance ask your insurance company or broker if a wind mitigation study can help lower your premiums. I recently saved approximately $800/year with a $50 wind mitigation study.
Refinance your mortgage to lower interest charges – Reducing your mortgage rate from 6 percent to 4 percent on a 30-year loan may save approximately $90,000 in total in interest and approximately $250/month.
Ask the local electric or gas utility for a free or low-cost home energy audit – The findings may help you improve your home energy costs.
Adam Wolf CPA/PFS, CFP® in president and owner of Wolf Retirement Navigation LLC (WRN), a full-service financial services firm, including tax services. The primary goal of the firm is to help individuals prepare for, transition to and enjoy retirement. WRN is located behind Mayo Clinic in Jacksonville, FL. For more information call (904) 232-8760 or visit www.wolfretirement.com.