Welcome back to the 6 Day Spring Clean Your Finances Challenge! In case you missed part 1, click here. Otherwise, we're on to day 3...
Day 3: Take a Look at Your Retirement Plan
Step 1: Do you have a retirement plan? If so, move on to step 2. If not, start one…right now! Never underestimate the power of compound interest. You can start by looking into retirement plans that your employer offers. There are often incentives associated with these accounts that make these investments worth your while. However, when you are first setting everything up, it’s smart to meet with a financial consultant. There are many things to take into consideration when saving for retirement and many factors that go into how much you should be putting away. A financial consultant can do all the hard work for you and talk you through the process of getting your account(s) set up.
Step 2: So you have a plan in place – great! Now when was the last time you reviewed your plan? Since the hard part is setting up your retirement plan, many people think that once this is done, they can sit back and relax for the next 40 years. Not true! It’s important to review your plan periodically to make sure you are making good progress, everything is still on track, and your plan accounts for any major life changes you have made. Our Retirement Planner Calculator is a good place to start to see if your plan is still a good one.
Day 4: Find Ways to Save Money
Today you will “audit” yourself to see what you are unwisely spending money on. Do you have all of the premium movie channels but rarely use them? Maybe you would be better off getting rid of the channels and instead subscribing to Netflix or taking advantage of Red Box or movies on demand. Or maybe you do subscribe to Netflix but never use it – time to say goodbye! The same goes for magazine and online subscriptions. It’s easy to continue subscribing to a product or service for $10 a month and seems not worth the trouble to get rid of it…but if you have 5 of these unused subscriptions, that’s $50 a month you could save by getting rid of everything.
Also, when was the last time you shopped around for insurance (car, home, health, etc.)? You may have done your research and gotten several quotes initially, but if it’s been awhile, things have probably changed and there’s a good chance you can lower your premiums.
Stay tuned for the 3rd and final part to the Spring Clean Your Finances Challenge!