Does your employer offer retirement savings through a 401(k) or 403(b)? If so, there’s a good chance that your employer offers a match on your contributions. That’s free money! And, it’s silly not to take advantage of it. To find out more about retirement accounts at your work, talk to your supervisor, manager, or someone in human resources.
Participate in the Utah Individual Development Account program. You attend financial education classes and set a savings goal (home, education, business). The Utah IDA Network program matches $3 for every $1 you save! You can save up to $1,500 in your IDA account and receive up to $4,500 in math money, giving you a total of $6,000 to invest in your goal!
For more information about the IDA program, click here.
Low and moderate-income taxpayers qualify for the Earned Income Tax Credit. This refundable credit often pays more than $1,000 (sometimes more than $2,000) to those who claim it. This free money can be a huge help to tight finances or low savings accounts. Be sure to save at least half of the money!
It’s a general rule of thumb that you should set aside money in case of an emergency. It’s up to you to decide when you’re having an emergency and need to access the funds but consider these situations.
• Your car breaks down unexpectedly. Using emergency will help you avoid using a credit card or taking out a loan.
• You lose your job. This is a true emergency. Your savings should help tide you over while you search for another job.
• You get sick. Money set aside can be used for unexpected medical bills. Paying for it outright saves you interest costs of a payment plan.
• Your roof leaks. If you own a home, your emergency savings can come in handy for unexpected repairs. Make it happen:
Ask your bank or credit union to automatically transfer funds each month to your savings account. Even as little as $10 or $15 helps! Collect all your loose change and put it in this account, too!
Saving money can often be challenging and finding ways to cut spending is difficult when money is tight. Check out these 3 tips to cut spending painlessly:
• Keep a careful record of ALL you expenses for a month. You might be surprised at how much you are spending on small things such as a daily latte or snack.
• Comparison shop for necessary purchases (food, transportation, insurance).
• Limit spending for birthdays and holidays. A few well-chosen gifts are likely to be more appreciated than a more costly pile of thoughtless gifts.
Today’s savings tips are brought to you by America Saves!