At Multop Financial, we believe that retirement planning was “once a luxury for a few, now a necessity for all.” Naturally, this means that you need to understand that you have to keep in mind that saving money should be one of your top priorities – which is something many people don’t really want to think about, especially if they are decades away from retirement.
However, it is also safe to say that people are beginning to realize that Social Security Benefits will not be enough to support even the most modest retirement plan. You need to plan for your “Golden Years” and to do that you have to think about saving money as soon as you start earning your first paycheck.
Minimize Your Debt
We live in one of the most consumer-oriented societies in the world where our debt, according to consumer spending experts, keeps rising every year. It’s always nice to have the latest appliances and the newest cars but along with our mortgages, Money Magazine reported, in 2015, that the typical American consumer spent $280,000 on interest and that residents of the great state of Washington were among the top 10 states with the highest cost of debt.
It’s always a good idea to purchase a home you can easily afford. By doing so, your home will not drain your budget and you will be able to pay off your mortgage in the shortest amount of time. That way, you’ll save a great deal on interest payments – money that can be invested for your future. Also, when it comes to relatively big price items like cars or household appliances, try to buy reliable brands at the best possible price and, if you can, ALWAYS try to pay CASH!
Minimize Even Minor Spending
You can also start saving money by being more conscious of minor spending. For example, purchases you make during the day that are minimal and may go unnoticed such as a cup of coffee or a candy bar. The money spent on such minor purchases has been referred to as “the latte factor” by David Bach.
What people need to understand about minor purchases or expenses is that they add up. It has been estimated that spending $5 a day can add up to tens of thousands of dollars over our working lifetime. Suddenly, those “minor” expenses become “major.” Just think – if you had that money invested into a work 401(k) and matched, it would double!
Financial advisors like to remind their clients that they need to develop a cash flow plan and keep track of their spending. This helps you become aware of what’s being spent and where. By doing so, you can take control of minor expenses and minimize them.
Financial advisors also encourage their clients to pay themselves first by transferring money automatically from their weekly paycheck into savings and investment accounts. That way this money begins to work for you and is unavailable for minor spending.
These are just some ways to begin to save money for the future. For more information, please use our online contact form or call us at (888) 671-7891 today. Our team of advisors will work with you to develop a customized financial plan specific to your personal goals!
Securities and financial planning offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Multop Financial is not affiliated with LPL Financial, and offers tax and accounting services separate and apart from LPL Financial.