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Message from Lynn:
Dear Friends:
As we approach the holidays it's difficult to think about saving money. Every time you turn around it seems you are buying another present or making another donation. But saving money is the one present you can give yourself that will pay you back time and time again.
ChooseToSave.org has put together a list to help you take a disciplined approach to saving money.
Saving Tips
How to Stay Disciplined with Your Savings
- Just do it! Pay yourself first!
- Gather all important financially-related documents and receipts to a central location. File them so you will be able to easily find the items you need in the future. Consider a computer based financial program so you can keep track of every dime you spend - financial control is a special form of power!
- Spending every dime and more? Start by cutting back on a few items per week and putting away that money. Pay yourself first. Just say no to spending more than you have.
- Ask for direct deposit at work if they offer it - you're saving money, and you don't even see it. A savings plan at work that pays you a "matching contribution" is the fastest way to save. Pay yourself first!
- Do not use credit cards. Force yourself to pay cash so that you can track the dimes. You will never have a late payment (now as much as $75) and you will never pay interest to others at the very high rates credit cards charge.
Top Saving Mistakes
- Not modifying your spending habits and committing to save money.
- Not taking advantage of your company's match in a 401 (k) plan, or getting involved in a defined contribution plan.
- Not appropriately/correctly allocating your assets to meet a specific goal or time horizon (diversification is important).
- Not setting a specific dollar target or financial goal.
- Not knowing how much you have, where you are spending your money, and how much you need to save for the future (failure to plan for retirement).
- Cashing out your retirement plan - should roll over to an IRA or your new company's retirement plan.
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MoneyWI$E is an informational service provided by Kansas State Treasurer Lynn Jenkins, CPA for
the people of Kansas. The material contained within MoneyWI$E does not necessarily reflect the
views of the State Treasurer, the State of Kansas, or other contributing sources. MoneyWI$E is a
free newsletter; materials contained within this issue may not be reproduced without express
written permission of the State Treasurer or the contributing source. The opinions provided herein
may or may not be appropriate for any individual's specific financial situation. Individuals
are advised to seek the advice of a licensed financial planner, stockbroker investment advisor,
or attorney before acting upon the information provided herein or making any investment decisions.
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