Month: January 2021

It’s a new year (thank goodness) and the perfect time to renew healthy habits, including those in your financial life. If 2020 taught us anything, it’s the importance of planning ahead. You may have already been working toward your big financial goals, like saving for retirement or planning for your child’s education. However, how you approach these goals may have had to change, depending on how the Pandemic impacted your individual financial plan. 

As financial planners and advisors, we are passionate about helping you set intentions and priorities around personal finance goals. A general rule of thumb is to try and save 15-20% of your pre-tax income. We know that our clients who are intentional and diligent about their financial goals have more success. 

Here are 10 money saving tips you can consider implementing in 2021 to improve your discipline around your personal financial planning and retirement goals.

Savings Tip #1 – Set a simple savings goal for each paycheck and get that out of the way before paying any bills. Set it to transfer automatically, so you get used to having less money to spend.

Savings Tip #2 – Evaluate your retirement plan. Once you set your budget, work toward taking that first 15% and invest in your 401K, IRA or retirement account. This habit will go a long way toward building your retirement savings.

Savings Tip #3 – If you’re lucky enough to still see a raise or bonus this year, consider using the increased income to step up your savings plan.  These incremental savings increases could really add up over time.

Savings Tip #4 – If your company offers a retirement savings plan with a match, you could be leaving money on the table if you’re not contributing to the plan.  Consider saving at least the amount your employer is willing to match. Saving the matching amount alone is rarely enough to meet most people’s retirement plans, but it’s a great place to start!

Savings Tip #5 – If you brown bag your lunch vs. eating out, you can save an average of $100 a month. If you invested that money into retirement you could have as much as $103,000 when you retire. (assuming 25 years to retirement, 2.5% inflation rate, and an average of 7% rate of return).

Savings Tip #6 – While you’re cleaning out those closets, consider selling stuff you haven’t used in a year and use the proceeds toward any credit card debt. Don’t forget to check your credit reports once a year for free at annualcreditreport.com. 

Savings Tip #7 – Set time aside to review anything that is on auto-payment. $5.99 here and $14.99 there add up quickly over time. Do you still need that music subscription or meditation app you forgot you subscribed to last year?

Savings Tip #8 – This is also a great time to evaluate your rates for things like insurance and other monthly services and fees. Are you getting the best rate?

Savings Tip #9 – If you’re not using a financial planner, consider a free consultation. The process of having a professional review your employer sponsored retirement plan in addition to other investments and savings, can help you determine if you are on track.

Savings Tip #10 – There is a load of free content out there to help you improve your financial acumen. Commit to reading a finance blog weekly, or find a podcast. Make it a routine to listen to your podcast during your workout, or on your commute from work. 

Again, it’s easy to say you want to save more money or trim expenses in 2021, but making intentional is key. 

For more information on how Ballast Advisors helps clients with personal financial planning, executive benefits, and saving for retirement, and see www.ballastadvisors.com/. Our financial advisors serving the Twin Cities and Southwestern Florida can help you reach your retirement and financial goals.  Our offices are located in Woodbury, MN, Arden Hills, MN and Punta Gorda, FL.

IMPORTANT DISCLOSURES

The opinions expressed are those of Ballast Advisors, LLC. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. These opinions contain references to material provided by third-party sources believed to be reliable but cannot be guaranteed for accuracy.  

Ballast Advisors, LLC is a registered investment advisor under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about the firm, including its services, strategies, and fees can be found in our ADV Part 2, which is available without charge upon request. The opinions expressed herein are those of Ballast Advisors, LLC and are subject to change without notice.