Finance & Enjoyment Blog

Easy Savings Tips from KKB Accounting

Saving money can seem very daunting as daily expenses add up. As your Denver Accounting Office, we at KKB CPA understand that when you juggle numerous commitments and expenses ranging from paying off medical school, car loans and mortgage commitments to paying for kids’ soccer and kids’ college tuition, trying to find places to save can be very difficult. So, we have put together a few practical savings tips that not only help you save money, but ultimately help you better manage some of your debt.

Pay Down Your Debt

Debt is the biggest single inhibitor of savings. If you are like most people, your largest debt is your home. But, oftentimes you may be carrying other forms of debt such as car payments, old college loans, credit cards and more. Getting rid of those debts as quickly as possible can help you tremendously in order to get money for savings. When you eventually pay something off, perhaps your car loan, take the money you would have paid for that car loan and add it to your next loan payment such as your college loans. Then, before you know it, your college loan will be done and then you can apply what you were paying between the car loan and college loan to your next set of payments. After all, you were paying that money already and now you are using that same money to accelerate the pay-off of other debts.

401(k)

A great tax planning tip is to participate in a company 401K from day one at a new job. The easiest way is having it taken directly from your paycheck. Start with a percentage from your paycheck that you feel you can handle, such as 6 percent. See how that goes for a few months. Then, you can increase it by one percent every few months until you reach a point where you feel you cannot afford more being taking from your paycheck. Also, if you have an employer match, then you have added contributions as long as you participate in the savings plan. While it may seem slow to build, keeping at it is important. And, if you should leave the job, you can take what you contributed and roll it over into an IRA or other investments so it continues to grow for you.

It’s The Little Things that Add Up

You may be surprised to find what you are spending your money on each month. To do so, we recommend you start a monthly budget and track what you are spending. You may find areas where you can cut back. For example, that innocent trip to the cafeteria for lunch each day or eating lunch out can easily add up to more than $100 a month. Same can be true of grabbing coffee at Starbucks, especially if you get the fancy mochas! Simply making lunch a few times a week and bringing it into work with you or skipping the run to the coffee shop can help free up a great deal of savings each month. And, tracking where and what you spend for a couple months will reveal other areas where you can find ways to significantly cut back and start saving.

How to Use This Information

Being able to save can help make your life easier and help you better enjoy life. At KKB, we can help you with advice on achieving financial success. Contact us online or call us at 303-815-1100.

What are some of your personal savings tips?


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