Savings Savvy

Twelve tips to increase your savings potential.

• Sweat the Small Stuff: Do the math to see the cumulative cost of small indulgences and then motivate yourself to cut back.

• Deal With the Big Stuff: Comparison-shop for the best mortgage, credit card, and insurance rates, etc.

• Beware of Analysis Paralysis: While researching investment options, start socking money away in a bank or money market account.

• Ignore the Joneses: Only buy what you need and want, not what will impress others.

• Ramp Up Your Knowledge: Join a class, buy a book, and/or get expert advice. For online financial assistance, visit these helpful websites: www.miserlymoms.com, www.choosetosave.org, www.ownyourmoney.com.

• Tame Taxes: Corporate employees may invest in 401(k)s, if your employer offers them, and utilize Flexible Spending Accounts. The self-employed may be able to maximize deductions and/or shift income.

• Seek Expert Advice: Carefully select advisors for areas you need.

• Visualize: Hold a mental picture of the financial life you seek. Cut out pictures of enjoying retirement. It may seem corny, but evidence shows it helps.

• Control Debt: Eliminate as much debt as you can.

• Save Anyway: Even if you have debt, get into the habit of putting some money aside regularly for emergencies.

• Separate Your Savings: Put long-term savings in a separate account from regular savings so it’s hard to get at, then forget about it.

• Believe You Can Do It: Follow these sensible savings steps, and you will believe you can do it—because you are!

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