We’re all sick of hearing it -- and paying for it -- but the cost of everything is up these days, and inflation is really putting a strain on people’s finances.
Now, more than ever, people are looking to simplify their finances and make their money work for them. Local 4′s Business Editor Rod Meloni spoke with another financial planner to identify ways for people to simplify their finances.
Here are some steps that you can take to stretch your money:
- To save and invest at the same time, go to your bank or credit union and open a Roth IRA. This uses after-tax dollars. Do a bank draft of $100 a month, and your investment growth comes out tax-free. And, in the end, because the government is not involved -- you don’t even need to take it out if you don’t want to.
- If you have a 401K or pre-tax retirement plan, keep your to six mutual funds and stick with index funds. You need to call your provider to check on this and to manage that properly.
- When you invest, do so for capital gains. Avoid unneeded tax deferral.
- Cash reserves will help you increase your deductibles in your insurance and other cases.
- If you use a tax accountant, check in with them mid-year to estimate your annual taxes, and be sure that you are not paying any more than is needed. That means you would not receive a big tax refund during tax season.
- Make it a point to read more about money, ways to save and ways to invest. It’s also important to read about ways to prepare for retirement. It’s suggested to make this a habit each day. We recommend the website thedollarstretcher.com.
The six steps listed above are not the only ones you can take.
We’ve compiled a list of more than 50 ways that you can simplify your finances and start saving more money.
See the full list here: Money Minute: Simplified financial planning -- 50 tips to get started
Below are some links that can help you learn how to save money: