Savings Goals for the New Year

Savings Goals for the New Year

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2016-12-14

There is no convincing argument for not saving your money. Most people will agree that saving (whether for retirement or any other reason) is an excellent idea, and it should be done. 

However, the number of Americans who have no cash in the bank to fall back on is staggering. Approximately 26% of adults have no savings set aside for emergencies, while another 36% have yet to start socking away money for retirement. 

Equally disconcerting are the remarkably wasteful ways Americans spend their money. USA Today listed out 20 of the top ways recently, and chief among them were: wasted energy bills, daily coffee purchases, premium cable packages, traffic tickets, lottery ticket purchases, unused gym memberships, tobacco, alcohol, gambling, ATM fees, expensive (unneeded) warranties, credit card interest, and so on.

Here are some ideas to increase your savings in the New Year:

Save your raise

If you get a raise this coming year, don’t increase your spending habits, but rather tuck away that extra money from your paychecks. 

Invest your windfalls 

When you receive a windfall of cash such as a bonus, tax refund, or inheritance consider investing for the future instead of immediately spending it.

Retirement

Get a 401k match, and take advantage of the tax benefits. Saving for retirement in a traditional 401(k) or IRA can help to reduce your tax bill, or you could save in a Roth account to eliminate the need to pay taxes in retirement.

Debt to savings

Once you’ve paid off any debt (credit cards, student loans, etc.), redirect the payments you were making to that debt, and put it into savings.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

 

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About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Contact

Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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