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How the average person can save money quickly and easily

Top Secrets for Maximizing your Savings

Secret Tips for Maximizing Your Savings

Maximizing your Savings

Maximizing your Savings

We have come up with some great tips on maximizing your savings and everyone  knows that he or she should be saving money, but many of us don’t save and one-fourth of Americans have no savings at all, you do not want to be one of those, saving for that great holiday or dream car can be easy if you focus on a few easy steps.

Simply setting up a savings account and pledging to put money aside is not enough. One must get into the habit of saving and do it in such a way as to build up the largest amount of savings possible.

Here are some basic strategies for building up a good nest egg:

  • Pay yourself first. Most people fall into the trap of putting money into the savings after paying bills and expenses. This makes it hard to save because you see the bills and give yourself an excuse not to save. A simple strategy is to put a specific amount of money into the savings before you pay the bills.
  • Use direct funds transfer. Most employees are paid by a direct fund transfer to their bank account. You can set it up to have a percentage of your income transferred directly to your savings. If you have another source of income, such as payments from a rental you own or an investment property, you can have that money go directly to savings.
  • Take advantage of a Health Savings Account (HSA). An HSA combines a tax-deferred savings account with a health insurance policy. U.S. residents that make less than $47,000 a year and families that earn less than $90,000 a year can even get a tax credit to help pay for one. An HSA lets you save up to $360,000 that you can write off on your taxes. You won’t have to pay taxes on that income if you use it to pay for medical expenses, including prescriptions. You can take funds out for any purpose after age 65 and pay only normal income taxes on them. Before that, there’s a 20% penalty for using funds for non-medical purposes so you have a strong incentive not to take money out.

    Maximizing your Savings

    Maximizing your Savings

  • Seek out savings vehicles with higher rates of return. This can include money market accounts and Certificates of Deposit (CDs), which are insured by the Federal Deposit Insurance Corporation in the United States. Annuities, which are insured by private insurance companies, have even higher rates of return, but you will face additional taxes if you take funds out before age 57½.
  • Put extra income and windfalls straight into savings. If you get a few extra dollars from gambling winnings, freelance work, a yard sale, eBay sales—whatever—put that money straight into the savings. That way you won’t get into the habit of spending more than you make.
  • Have your salary paid directly to your mortgage.  If you have your paymaster send your pay directly to your mortgage and then draw money  from your mortgage this can save huge amounts of interest and you can pay off the loan much quicker, this is my top secret too maximizing your savings.  You may need to set up a special mortgage to do this but it will be well worth your time and effort.

Maximizing your savings is a habit; if you can get yourself into it, you can build up a substantial cash reserve or nest egg. All that is really required for saving is self-discipline and the focus on getting those savings bigger!

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