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Added on the 01/10/2020 17:00:58 - Copyright : Wochit
Business Insider personal finance contributor Alexis Rhiannon opened her Roth IRA in her 20s and has managed to max it out every year. That is, she's maxed it out every year ever since she began using a strategy she calls 'squirreling.' To meet any annual savings goal, like an IRA contribution--or anything else--just divide the full amount by 52 weeks or 365 days. Then, set up an automatic transfer from your checking account for that amount to go into your IRA, or any other account you can't access easily. After all, the annual ROTH-IRA contribution max for 2020 is $6K if you're under 50, or $7K if you're over fifty. That means you need to save $116 or $135 a week, or $16.44 or $19.18 a day. If that's too ambitious, you can always lower the amount, but you can still make great headway.
Business Insider contributor Alexis Rhiannon's cooking style can be likened to a pendulum. One day, she's an ambitious gourmet. The next day, she orders takeout. But Rhiannon decided to get focused at the start of 2020, and chose to cook her way through, start to finish, a single vegetarian cookbook. Now it's nearly the end of the year, and Rhiannon noticed something everyone interested in personal finance and frugality will be delighted to hear. She cut her grocery bill in half. Half! Going vegetarian, by means of working through 'The New Moosewood Cookbook' by Mollie Katzen, has saved Rhiannon tons of money. But that's not all. She also says such focus leads one to shop smarter by using ingredients already on hand--and to avoid dropping loads of cash on indulgent holiday meals.
To build wealth that can be passed down through generations, getting out of debt-- and staying out of debt--is very important. On the other hand, Business Insider personal finance contributor Jannese Torres-Rodriguez argues increasing your income is just as important. It's not always possible to find jobs that progressively pay more and more. But side hustles can serve that purpose instead. Torres-Rodriguez says her side hustles now bring in roughly $100,000 a year, and she uses it in three ways to build generational wealth. She first accelerated her own retirement savings. Then, she helped her niece with college, so she doesn't have to leave school burdened with debt. Now, it gives her enormous pleasure to be helping out her own beloved parents through their golden years!
The average homeowner spends anywhere from 1% to 4% of their home's purchase price on maintenance every year. That can make home warranties appealing. But a home warranty's fine print can translate into it not always coming through when you need it to. So when Business Insider contributor Choncé Maddox got burned by her home warranty company skating out of some pricey repairs, she turned the tables. Instead of paying for another warranty, she put the same $500 she would have spent on it into a high-yield savings account for home maintenance. If a new air conditioner costs $2,000 to $3,000, she can come up with the money a lot quicker without paying for a warranty! Also, she and her husband took it upon themselves to learn how to take care of the valuable systems in their home. Hooray for YouTube!
Freelance writer and Business Insider contributor Rebecca Chamaa and her husband had ambitious savings goals when they first got married. On the other hand, they weren't quite sure how to go about it. Should they save a fixed amount of income each month, or a percentage? If you have an employer-matched 401(k), Chamaa says it makes sense to at least contribute the same percentage. Otherwise, you're losing money! Also, live below your means. As your income rises, so will your savings. And if you pay off your debt, you can always increase your percentage, too. Same with bonuses. If your income fluctuates, save or invest what's left over after your bills are paid!
Paying taxes with a credit card to earn a big sign-up bonus or reward points makes sense for some. You can pay taxes with a credit card through third-party providers, not through the IRS website. Some states, cities, and counties allow you to pay income and property taxes with a credit card as well. Setting up a payment plan with the IRS is safer than using your credit card if funds are tight. Deciding whether it makes sense to pay an extra fee when filing your taxes depends on your card's rewards. You should also consider your ability to pay it off before the next statement due date, says Business Insider.
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