If you don’t want to encounter a retirement emergency, you need to start saving money now!
Let’s address the elephant in the room: whether you’re a retiree or you’re preparing to leave the workforce and enter your golden years, one thing’s for sure: you need money. Everything requires money nowadays, so it’s a necessity.
In my opinion, it’s easier to save money now, when you don’t exactly need it, than it is in the middle of a crisis. Just think about a retirement emergency, such as unexpected medical expenses. You have to pay hundreds, if not thousands of dollars, and you only have a few days to get them. It would be tough and very stressful.
However, it’s never too late to start, and small changes can add up quickly. If you want to save money now and be prepared in case of a retirement emergency, I have some amazing tips for you. Here they are:
1. Follow the 30-day rule
One easy way to save money before you need it is to allow yourself a cooling-off period between the moment an item catches your attention and the moment you make the purchase. If you want something from an online store, just add the item to your cart and then leave the page to give it further thought.
In certain situations, if the shop detects that you left the basket full without ordering it, you might even receive a promotional code. If 30 days isn’t long enough, you can also try shorter time frames, such as a 24- or 48-hour wait. Moreover, this also allows you more time to think about whether you need that product or not, and it’s a great way to become more responsible.
2. Reduce your electric bill
Another way to save some cash before you encounter a retirement emergency is to pay attention to your bills. The good news is that you can reduce your annual electricity costs by hundreds of dollars by making both big and tiny changes to your energy usage.
If you see any gaps in your insulation, think about sealing them up, installing smart power strips, replacing your old appliances with new, energy-efficient models, and getting a smart thermostat. Over time, even small monthly reductions in your electricity use can result in significant savings, so don’t neglect this tip. It can save you hundreds of dollars.
3. Create a 50/30/20 budget
You’re probably sick of hearing about this so often, but it’s one of the most useful things you can do today to avoid a retirement emergency. Everyone’s talking about how important setting and following a budget is, but sometimes people are so excited to save money that they forget about other important things, such as traveling and going out.
When you suppress yourself too much, even if you think it will help you save money in the long run, you actually cause frustration, making it harder to achieve your goals.
The 50/30/20 budget rule is exactly what you need in this case. 50% of your post-tax income can go to debt payments, utilities, groceries, gas, medication, and other bare necessities. 30% will go to wants, such as clothing, restaurant trips, concerts, traveling, etc., while the rest of the 20% goes straight into your savings account. Don’t forget that you can adjust these percentages based on your financial goals and income.
4. Set automate transfers
We all know that life happens, and it’s hard to save money when you desperately need something. But what if you don’t think about putting money aside and it just happens? You can do so thanks to an automated transfer.
If you set up monthly automatic transfers from your checking account to your savings account, the money will build up without any further effort on your behalf. This simple tip will ensure you don’t forget about your savings goals, regardless of how busy and demanding life gets. It might be harder to purchase a specific item knowing there’s not a lot of money in your bank account, but it will prevent you from having a retirement emergency.
5. Shop smarter
Since we all need to go grocery shopping to survive, why not do it smarter and make our money work for us? Ask your local grocery store for coupons and loyalty programs available to maximize your savings as you put things in your cart. Don’t forget to subscribe to their newsletter to find out about deals and discounts before anyone else.
Did you know that if you use a cash-back credit card, you can get back some of the money you spent on groceries? Some cards will offer their customers as much as 5% or 6% cash back, but make sure you’re on top of the game and pay off your bill each month to avoid paying huge fees and interest.
And if you like to shop from giant retailers, such as Amazon, Target, or Walmart, you can make the most of your money by downloading the store’s app. They’re more likely to post about additional savings there, so don’t miss it.
If you need extra help, you can check out apps such as Flipp to help you sort through coupons and flyers from local stores by entering your ZIP code.
… We have many other tips on saving to avoid a retirement emergency, so keep reading!
6. Lower your car costs
Your car is probably one of the best things you own, but let’s face it: it costs a lot of money. Insurance, gas, and potential repairs are only a few of the things that make it a high-maintenance item.
If you have an auto loan, you might save a significant amount of money by refinancing and taking advantage of lower interest rates. If you regularly shop around for auto insurance, you’re more likely to save money than just letting your current policy automatically renew.
Another way to save money before a retirement emergency strikes is to only use your car when needed. Make sure you also free your trunk from heavy and unnecessary items and refrain from needless sudden acceleration. These little steps will make a huge difference and will help you reduce continuous auto maintenance expenses.
7. Track your spending
Some people overestimate the power of tracking, but if you want to save money before a retirement emergency forces you to do so, it’s time to pay attention. Each time you pay for something, write down in your notes app or on a piece of paper how much you spent and on what.
Count all the expenditures at the end of the day and then again at the end of the month, so you can have a clearer vision regarding your costly expenditures. This will make it easier to cut down on necessary things and put more towards your savings. I followed this tip for a couple of months and I was shocked at how many small things I was buying weekly: from coffees, ice creams, and sandwiches, to lots of online courses that I’ve never taken.
8. Map out your big purchases
Just because you want to save money while you can doesn’t mean you should stop spending it on important items. If you have a big purchase planned, keep reading, because I know how you can spend less.
If you plan to purchase gadgets, vehicles, furniture, appliances, and other big items by yearly sale times, you’ll still have a lot of money in your pocket. Don’t just assume a deal is a great money-saving tool; rather, keep track of the prices over time to make sure you’re not tricked.
I know your time is important, which is why you should let the apps work for you. The Camelizer browser plugin, for instance, can track prices on Amazon and notify you when they drop. Moreover, the Honey browser plugin searches for cheaper pricing elsewhere and pulls in promo codes.
You can also use the ShopSavvy app to ensure you receive the greatest bargain when you shop in person. It notifies you when prices drop elsewhere and allows you to scan bar codes to save as much as you can. Have you ever tried an app like this? Did you enjoy using it? Share your experience with us!
If you want to save cash, but have a hard time doing so, I recommend you check out this lovely cash vault wooden box to keep you motivated. If you enjoyed this article and want to check out something else from The Price Makers, here’s a great post for you: Free Money? Here Are 7 Sure Ways to Get Them
