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Eight Ideas to Help You Save Money

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M. Ahmad Adnan, CFP®, CRPC®, RFC® / Financial Advisor / Business Financial Advisor - Ameriprise Financial Services, Inc. M. Ahmad Adnan, CFP®, CRPC®, RFC® / Financial Advisor / Business Financial Advisor - Ameriprise Financial Services, Inc.

Saving money sounds easy enough – simply spend less. Yet, finding areas to cut expenses so that one actually has the ability to save more can be a challenge. If you look for ways to make the most of your hard-earned dollars, these eight ideas are a good place to start:

1. Review your federal income tax withholding. Make sure that your federal withholding is appropriate for your income and family size. If you pay in too little throughout the year, you may owe money at tax time. On the flip side, having too much money withheld from every paycheck means that Uncle Sam gets to put your money to work throughout the year instead of you. Therefore, it is important to manage this expense.

2. Lower your insurance rates. The next time your auto and home insurance policies are up for renewal, shop around to see if you can replace your coverage for less. The savings could be substantial.

3. Refinance your mortgage. Typically, it makes sense to refinance if you can lower your interest rate and plan to stay in your home long enough to realize a savings after you factor in closing costs. Keep in mind, a large percentage of the payment in the early years pays off the interest on the loan, not the principal. So, if you have had the mortgage for a while, refinancing may not be your best bet. An online calculator or a reputable mortgage professional can help you decide.

4. Take the bus or carpool. The cost of gas, wear and tear on your vehicle, tolls and paid parking can add up quickly. If you usually make the daily commute in your vehicle alone, price out the public transportation options in your area. It may be significantly less expensive than driving. Or, consider starting a carpool so that you can share expenses.

5. Consider signing up for a health savings account (HSA) next time open enrollment comes around. If you do not need a higher level of coverage, an HSA may be a good option for you. An HSA is a tax-advantaged medical savings account that you can use to pay for qualified medical expenses if you are enrolled in a high deductible health plan (HDHP). You – or your employer – can deposit pre-tax dollars in your HSA. Regardless of who deposits it, all the money in the account is immediately yours. Even better, your unused HSA balance rolls over from one year to the next. So, if you do not use it, you do not lose it.

6. Conduct an energy audit of your home. It can help you determine which improvements will save you the most money and energy. For more information about professional audits – or tips on how to do it yourself if you are handy – visit energy.gov.

7. Request a credit card rate reduction. If you carry a substantial balance, call your credit card company and request a rate reduction. If they will not honor your request, get a zero percent balance transfer to another card you already have or a new card. It also may be a good idea to limit purchases on your credit card until you are in better financial health.

8. Give something up. Do you pick up a daily coffee or soda from a specialty shop or convenience store on your way to or from work? If so, consider giving it up. Think quitting a $3.50 a day habit will not make a difference? It will. If you work 250 days a year, you could save $875 in that given year.

When you explore ways to save money, consider consulting with a financial advisor. An advisor can help you create a financial strategy to put your dollars to work more efficiently and keep you on track to achieve your financial goals.

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Ameriprise Financial and its representatives do not provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients.

This communication is published in the United States for Texas only; and this advisor is licensed only in the states of CA, CO, FL, KS, MO, NC, NM, OK, TX, and VA.


M. Ahmad Adnan, CFP®, CRPC®, RFC®
Financial Advisor
Business Financial Advisor

Ameriprise Financial Services, Inc.
3200 Steck Avenue | Suite 250 | Austin, TX 78757
Phone: 512.213.6400 Ext. 102 | Toll Free: 866.238.4230
Email: masroor.a.adnan@ampf.com
ameripriseadvisors.com/masroor.a.adnan

© 2013 Ameriprise Financial, Inc. All rights reserved.


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