Saving Tips for Newbies, Experts and Everyone in Between
BY MARGARETTE BURNETTE
When it comes to saving money, this year may look a little different from years past. The savings rate is lower than its peak of about 34% in April 2020, but Americans are still saving more than they did before the pandemic. This is according to the U.S. Bureau of Economic Analysis, which defines savings as the amount left over after spending money and paying taxes. Unemployment is still elevated, however, and those who have lost income may be finding it more difficult to save. Either way, it’s important to have a savings plan. Whether you are flush with cash, not sure how to save money or somewhere in between, here are the actions you can take now to maximize your savings: • Unsure how to save • Saving a little at a time • Already saving, ready to maximize
UNSURE HOW TO SAVE
If you’ve found it difficult to save money lately, try these tips to strengthen your bottom line: Cancel high bank fees and other unnecessary expenses. “Businesses conduct financial audits for their expenses. Why not conduct a personal audit for yourself to cut spending?” says Michael Foguth, founder of the financial advisory firm Foguth Financial Group in Brighton, Michigan. If you have a bank account that charges a monthly fee of $5, that adds up to $60 every year. Consider switching to a free account. There are options at many top online banks. Another example: Say you signed up for a streaming service at the start of the pandemic because you were mostly at home. But now, if you’re not watching TV as much, you could cut the service to save money, Foguth says.
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