As a federal employee, you enjoy one of the best retirement systems in the country. Once retired, you will be able to access funds from Social Security, your annuity program, and your Thrift Savings Plan (TSP). The first two tiers of your retirement plan are fairly “automatic” but of course the funds in your Thrift Savings Plan depend upon your personal decisions. This gives you a lot of power to determine just how much retirement income you will actually enjoy one day.
Of course, saving for the future requires a bit of discipline, and it can be difficult to carve some extra cash out of your budget.
Use these ten methods to save a bit of cash now, and put that savings toward your future.
Spend less on prescription medications. Generic medications are held to the same strict FDA standards as name-brand ones. But of course, you should talk to your doctor to be sure switching to generic is right for you.
Learn to haggle. Sticker prices on items like appliances and cars are almost always negotiable. You can even ask for secret coupon codes on smaller items like clothing.
Buy used. Buying new products means you’re paying for a huge markup. Before buying any significant items, check out Craigslist or other online ads for deals on gently used goods. Sometimes you can even get brand-new items, in the box, at a steep discount.
Buy in bulk (when it makes sense). Sometimes bulk purchases are a waste. Are you really going to drink five gallons of milk this week? But warehouse clubs and even Amazon can save you a lot of money on non-perishable goods, so be sure to shop around for the best deal.
Start a neighborhood co-op. Don’t purchase an expensive item that you will only use a few times per year. See if your neighbors would like to join a co-op, where you share the cost of landscaping equipment or other pricey purchases.
Don’t upgrade right away. When companies release a new tech item (like phones or TVs), the initial markup is high to help them recoup the cost of development. After a year or two, the price will drop dramatically, so wait it out unless you urgently need that item.
Research before purchasing. Before you go shopping, comparison shop online. You can find the best deals and coupon codes before setting foot in a store.
Make good use of your credit card rewards program. Research your benefits thoroughly, and use the right card for each purchase that you make. As long as you pay the balance by the end of the billing cycle, interest won’t accrue, and you can earn up to five percent cash back on everyday purchases like gas and groceries. Just remember to stay within your monthly budget!
Saving money is only the first step. Now put that money you’ve saved into your Thrift Savings Plan, and you can enjoy a more secure retirement income. Plus, now you’ve developed great habits that will help you as you transition to a fixed income!
For more information on budgeting and saving for the future, give us a call. We can help you develop a workable budget now, so that you can better prepare for retirement.
