(KTVI) - We all know that saving for retirement is important, but many people don’t know where to start or what to do to maximize their savings. In many cases, there are some easily identified spending cuts you can make now that will add up to big bucks later. Matt Allgeyer, Financial Planner with Wamhoff Financial Planning & Accounting, share five ways to add to your retirement savings.
1. Cancel cable
- Today’s average cable bill is $90 per month
- Opt to watch your local broadcast networks with an antenna, and subscribe to a streaming service like Netflix for $8 per month
- This saves you $82 per month, or almost $1000 per year
2. Limit your dining out
- Ten family meals out per month at an average cost of $30 per meal costs you $300 per month
- Cut that number in half to five meals out and save $150 per month, or $1800 per year.
3. Buy in bulk
- Packaging can account for 20% of an item’s overall price. Reduce your family’s cost by buying in bulk.
- This could save the average family $1000 per year.
4. Cut back on the snacks.
- Many folks will spend $5 on snacks and sodas on a visit to the convenience mart, and for some people that’s every day!
- Plan for the snacks and drinks you’ll want throughout the week, and buy in bulk.
- This could add up to savings of over $1000 a year.
5. Pamper yourself … at home
- Just one manicure / pedicure per month can cost $50.
- Do this at home, and you’ve saved $600 per year.
There are many other ways to add to your retirement savings, but these five alone add up to $5400 per year in potential funds that could be going into your retirement account. Assuming a 5% rate of return, that could mean $71,000 ten years from now and $178,000 twenty years from now!