Notice: 10 tips to boost your retirement savings in 2022


If you want to start your new year off on the right foot, try a few quick and easy cash moves to get rich and fatten your retirement account.

And don’t worry about the little things, because over time even minor savings can translate into big gains. See the table above. It is based on historical stock market data and simple calculations. That’s what you’ll get at age 75 if you save an extra $ 1 a day. That’s it.

And these numbers are adjusted for inflation.

I know someone who starts the year by putting all their leftover pennies in cardboard sleeves and taking them to the bank – not for the few bucks they collect, but as a ritual to start the year. of value for money. You don’t have to go that far to turn your pennies into gold in retirement.

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1. Change your mobile plan

Chances are, you’re just spending money on your cellular plan. The average bill is around $ 70 per person per month, by some estimates. Unlike, say, this RedPocket plan it costs $ 99 for a whole year. Estimated savings: $ 500 per year.

2. Shift your streaming services

Remember when “cutting the cord” on the cable company was going to save you a ton of money? How many individual streaming services do you subscribe to instead. Each at $ 6 or $ 10 or $ 20 per month. None cost the earth, but they add up. Meanwhile, how many of us spend clicking on those horrible new remotes desperately trying to remember what we were looking at where. Simple solution: stagger them. Subscribe to one and only one each month. Estimated savings: $ 300 per year.

3. Change bank for free money

A bank robber hit my neighborhood a few months ago. He got away with about $ 300 before being chased down the street by a security guard. Meanwhile, one of the banks he tried to rob was offering $ 600 cash bonuses to new customers. True story. But it’s not just bank robbers missing out on a gift in plain sight. These kinds of offers are everywhere if we look for them. The banks want new customers and they are willing to bribe us with money to cross the street and fill out some forms. Estimated savings: $ 600 per year.

Read: Help Your Teen Turn $ 500 Into Almost $ 2 Million

4. Earn money fast

We all know these so-called “fast” diets, where we do not eat one or two days a week, or even more. Quick money involves a similar principle. Some people resolve to, say, go away one week a month without spending any money. (Obviously, this relates to discretionary spending and doesn’t involve skipping utilities or rent.) Some nutritionists argue that fasting isn’t really a miracle way to be healthy, it’s just a disciplined way to make you eat less. It’s the same with quick money. Spend a week without spending a dime and you quickly realize how much less you could spend the rest of the time too. Estimated savings: $ 300 per year.

5. Become a vegetarian

Voters are so angry with rising meat and chicken prices that President Biden has just announced an investigation into the alleged profits of big meat companies. Whether this leads to something is to be guessed. If the American meat giant Tyson Foods TSN,
+ 1.25%
is sort of ‘profiteer’, that would come as news to Wall Street and shareholders: Tyson stock has been a turkey, not a bull, for the past five years, underperforming by about half the average stock of the S&P 500. One of the reasons meat and chicken are so expensive is because they use so much energy to produce, which is also why they are so bad for the environment. This guy cut her food costs almost a decade ago by switching to vegetarianism and has never looked back. Estimated savings: $ 200 per year.

6. Sign up for a new credit card

Banks don’t give free money just for new checking and savings accounts. They are also hungry for new credit card customers. Offers are mailed for sign up bonuses of $ 200 or $ 300 if you sign up for the last card. (And if they don’t come by post You can find them online). Beware of annual fees and make sure you don’t carry a month-to-month balance or you’ll end up paying the bank more than they pay you (which is, of course, what they want) . But do it right and it’s free money. Estimated savings: $ 300 per year.

7. Stop Lending Your Money For Free To The Richest Man In The World

If you’re like 120 million other taxpayers, or about three out of four taxpayers, you are paying too much tax every pay cycle. Over the course of the year, you pay about $ 2,900 too much and get the money back when you file your taxes in the form of a refund. Congratulations. You just loaned Uncle Sam some money. For free. During that time, of course, you’re probably borrowing money from your mortgage provider, credit card company, and other places, paying maybe up to 30% interest. And if you’re like most taxpayers, you do it every year.
Simple solution: file a new W4 with your employer and reduce the amount of taxes “withheld” or paid in advance, on each paycheck. The result: you keep your money when you earn it. This can pay off debt or if your credit cards are paid off it can go into your 401 (k) or IRA where instead of earning you 0% he can earn, on average, inflation plus about 6% . Estimated savings: $ 200 per year.

8. Open a (another) IRA

Are you contributing to a tax-efficient IRA as well as 401 (k) at work? If you have a spouse who does not have a paid job, do you also contribute to a spousal IRA for him or her? And if you have a side activity or a side activity, do you also contribute to a SEP-IRA from this income? Otherwise, you’re probably leaving money on the table. You can contribute up to $ 6,000 per year to your own and your spouse’s IRA (and an additional $ 1,000 for those over 50). And SEP-IRA limits go up to 25% of your self-employed income up to $ 61,000 per year. Estimated savings: Thousands.

9. Change insurance

You know those ads that tell you you can save hundreds of dollars if you switch from Insurance Company A to Insurance Company B? What about those other ads that say the exact opposite? They are all true. You can pretty much always get a better deal if you shop, whether at home or auto or other types of insurance. Just like the Mustard King said he made his money with what people left on the plate, insurance companies make their money with people who don’t change. It’s so complicated, after all. And that is a problem. But it is also money. And the money saved, unlike the money earned, is exempt from federal, state, and municipal taxes. Estimated savings: $ 300 per year.

10. Stop paying someone else to give you caffeine in the morning

No financial advice is complete without mentioning the so-called “Latte factor.But the giant daily money drain continues. The Americans gave Big Latte about $ 20 billion last year. (In fact, it was the number of only one company). Even though it’s getting easier and easier to brew your own coffee or tea at home – and even though lattes cost more. Estimated savings: $ 300 per year.

Total savings: $ 3,000. OK, so this is theoretical and some may save a lot more and others a lot less. But every dollar counts. And if you save $ 3,000 a year for 30 years and invest it in stocks, on average you’ll end up with an additional $ 240,000. Not bad for very little work.

About Matthew Berkey

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