GREENSBORO, N.C. — I know you've felt it in your own pocket. This year's inflation has us paying more for all kinds of things, both the things we want and the things we need like groceries.
Scott Braddock, from Scott Braddock Financial, joined WFMY News 2's "2 Wants to Know" segment, to introduce five tricks to save money ahead of the holidays.
Get your free money
One in three Americans leave free money on the table by not taking full advantage of their employer’s 401(k) match. The majority of employers will match your 401(k) contributions. The average match is 4.3%. Scott Braddock recommends contributing 10-15% of every paycheck to your 401(k). If that isn’t feasible with your current financial plan, at least contribute enough to get the company match.
Reduce tax withholding at work
If you’re waiting for your tax refund each spring, consider changing your withholding to benefit your finances year-round. You won’t get as big of a refund, but you will get more in each paycheck throughout the year.
You can make this change at any time by filling out a new W-4. There is an IRS calculator to help you determine your correct withholding.
Be sure you are making good use of the extra money in your paycheck. Set up an automatic transfer to a savings account or bump up your 401(k) contribution rate.
Get organized
Organizing your finances is key. You want to make sure you're allocating your funds in the right place. Assign certain duties for your money.
Scoot Braddock recommends meal prepping. Plan out your meals for the week so you don’t buy extra items.
You should map out your major expenses. If there's something that you want and know that is it expensive, track deals for that item and make plans to buy big ticket items.
You should also track your monthly expenses. You can use calendar templates to track your financial obligations. This way you know what to pay during each pay period and can plan to set money aside for an upcoming bill. Also, cancel any subscriptions you don't use regularly.
Negotiate your bills
Negotiate with your cell phone, internet or streaming service providers for a lower monthly bill. Some companies are 80% more likely to give you a lower rate if you call and negotiate.
It’s also worth a call to your auto insurance company to see if you can get a lower rate based on criteria like your profession, the age of the car you drive or theft-deterrent systems on your vehicle.
If you’re struggling to pay off credit card debt, call your credit card company. A majority of cardholders got a late fee waived or a lower interest rate just for taking the time to call and ask.
Challenge yourself
There's a few money challenges you can do to save large sums of money.
Take the nickel challenge.
Here’s how it works: on the first day save a nickel and increase your savings by a nickel each day. Do this for one year. The most you’ll set aside is $18.25 on day 365. After a year, you will have saved $3,358.05.
Make it a competition and have a friend, relative or group all come up with a savings goal and compete to see who can get there first.
Have an accountability partner. Getting friends involved holds you accountable, and it creates some extra motivation to save.
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