TAKE ACTION
OCTOBER 2021
Make the most of your money
Being smart about your money can help you have enough for everyday expenses while saving for future goals. Here are some practical suggestions to get you started.
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5 tips for smarter spending & saving
Maybe it’s tough to stretch that paycheck. An unexpected expense pops up. Or you’d love to plan a great vacation. Whatever’s going on in your financial life, there are steps you can take to spend and save wisely. Here are five tips you can use today:
1. Know what you spend
Here’s something to try: For two weeks, save all your receipts and track online purchases using your bank account (or just write them down). Put purchases into groups — food, entertainment, clothing, tech and other expenses. Don’t count essentials like rent/mortgage, utilities and insurance.
Look at your totals. What do you spend most of your money on? How can you spend less? For example, if you spend a lot on takeout and restaurant meals, consider cooking more meals at home and packing a lunch more often. Shop the sales and visit consignment stores for clothing. If you have a tech wish list, narrow it down to one special item you just can’t live without.
2. Budget for the kids (furry ones, too!)
Spending wisely means getting the kids involved. Learn to say “no” to extras that aren’t needed. If life is a whirlwind of after-school activities, choose the most important one and let the others go. Take advantage of free local fun like parks, libraries and playgrounds. Join a school carpool. Trade babysitting services with other parents.
Remember that your furry family members have expenses, including pet food, toys, equipment, annual checkups and the occasional unscheduled vet visit. Make sure your budget has room for your fur babies, too.
3. Save automatically
If your checking and savings accounts are with the same bank, set up an automatic transfer. Decide on an amount to move from checking to savings on a regular basis. Most online banking services let you choose weekly or monthly transfers.
It’s a painless way to save. And don’t worry that it’s not enough. Even a modest amount builds up over time, and it’s much better than not saving at all.
4. Think about trade-offs
Saving for something special? Change your daily spending habits to free up extra money. Let’s say you’re saving for a new cell phone and you buy one or more Starbucks tall lattes every day. Think about how many lattes would pay for the new cell (or at least contribute a good portion of the cost). Cut back on coffees for that new cell phone!
5. Cut health care costs
You can save on health care without sacrificing quality. Use in-network providers. Ask your doctor to prescribe generic drugs whenever possible. Visit an urgent care center or walk-in clinic (instead of the emergency room) for quick, convenient non-emergency care. Take advantage of preventive care, like routine exams and screenings, to stay healthy and catch problems early.
The following resource is available to help you be more in control of your financial well-being. This resource is confidential and available to you at no cost through your Costco benefits.