Everyone hopes to catch a little “luck of the Irish” on St. Patrick’s Day, but it’s important to remember that piling up a pot of gold in the real world has little to do with leprechauns. The path to financial success isn’t a ride on a rainbow, but lots of small steps that add up over time. Here are seven ways to increase your green now.
1. Grow your green
Don’t let your rainy-day funds lie dormant in a low- or no-interest passbook account. There are plenty of high-yield savings and money market accounts paying close to five percent interest these days. Many have no minimum deposit requirements and offer check-writing and ATM privileges. Be aware of any service fees, however, as they could cut into your earnings.
2. Save the planet, and your money: buy used
A recent study by the Australian government showed that the chemicals that create that new car smell are actually toxic. Buying a used car may be green in the environmental sense, but it also will help you save some green. It’s estimated that new cars lose 25 percent of their value the moment they are driven off the lot. Do some research to find the used models that are most reliable.
3. Get frugal on fund fees
You’ve been such a good little saver, so why aren’t you seeing the return you were expecting on your mutual fund? It could be that fees are eating into your yield. As a rule of thumb, annual fees should be no more than 1 percent on a typical stock fund.
4. Skim the lattes
A caramel macchiatto here, a cinnamon scone there and pretty soon you’re not just seeing a bulging waistline, but a thinning wallet. You’d be surprised how much those little daily splurges add up. Save your receipts for a month, then sit down and find out where the fat is in your budget.
5. Pump up your plastic power
You’ve paid down that balance, right? Well, now that you’re no longer working for your credit card, make your credit card work for you. Some credit cards earn you up to 5 percent cash back on certain purchases, for example. Others get discounts on wedding supplies and even points toward veterinary services. There is even a credit card on the market that earns you credits toward those lattes you shouldn’t be buying.
6. Reorganize for retirement
You’re contributing the maximum to your 401(k), right? Now make sure you’re getting the maximum return on your investment by rebalancing your mix of stock and bond funds every year. Pick a day – (St. Patrick’s Day perhaps?) – to review your investments annually.
7. Save on life insurance
Since you’re already reviewing your retirement accounts, why not take a few more minutes to consider your insurance? Because life expectancies have increased, life insurance premiums have actually decreased by 50 percent in the last ten years. So make a St. Patrick’s Day resolution to shop around, and head out for a very green celebration indeed.
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