1) Save more. A “Put & Take” savings account can help you avoid credit cards and high interest loans. Determine your average monthly spending for occasional expenses such as car repair, vacations and home repair. Use a regular transfer to move that amount into your savings account.
2) Get out of debt. The key is to kick the “plastic habit.” The use of your money (cash) is free, but the bank’s money will cost you. Pay more than the minimum and work to improve your credit score. Once you pay off a bill, use that money for another bill.
3) Get a raise or a better job. In this tough economy, “just doing your job” is no longer good enough. Look for areas that your company values and get the training, or volunteer for those tasks and track your progress. Update your resume regularly.
4) Pay less in taxes. Itemizing can provide a better refund over the standard deduction. Keep a folder to store deductible receipts. Also, use tax-advantaged savings and flex spending accounts.
5) Cut health care costs. Improving your health will save you money by lowering your health care costs. If you qualify, Medicare Part D can save an average of $1,200 per year.