Unfortunately, the world’s experiencing an unprecedented economic downturn. Many countries’ economies were already plummeting because of the COVID-19 pandemic, and now because of the ongoing war in Ukraine and rising gas prices, things are starting to get out of control. A lot of European and U.S. households are having to make the decision to choose between heating their houses and buying food, because of the cost of living crisis. There’s never been a better time than now to start saving money, and that’s exactly what this post will help you with.

Here are six habits that you should take on that can save you a lot of money:

Hairdressing

Professional hair cutting can cost a lot of money. This is an unfortunate expense, that can’t be remedied unless you make a concerted effort to learn to cut your own hair. Fortunately cutting one’s own hair is not as difficult as it might think. An alternative to cutting your own hair is to learn how to cut hair, and then teach your partner or anybody that you live with. That way, you can cut each other’s hair. If you are going to start cutting your own hair (or a loved one’s hair), then it’s a very good idea to invest in a quality pair of scissors. Most experts agree that scissors made in Germany are some of the best, in terms of hairdressing equipment. You can’t compromise on quality when it comes to equipment if you are going to cut your own hair or somebody else’s.

Frugality

If you want to save money, then you need to begin acting more frugally. Frugality can save you an absolute fortune, but it can be hard to implement. Behaving more frugally means spending as little as possible, cutting back on things that you usually do (like hairdressing), and generally tightening up the proverbial purse strings. In order to achieve total frugality, you will have to work out what excess purchases and things you can cut out of your life. Behaving frugally also means reducing the amount of money that you give to other people, so if you frequently lend to loved ones, it’s time to stop.

Expenses

In order to save money, you need to start tracking your expenses. Tracking your regular expenses will help you to determine where your money is going, and what it’s being wasted on. A lot of people have totally unnecessary expenses, like several streaming services, as well as subscriptions to music apps, and other things. As far as music is concerned, YouTube has a huge library and it’s completely free, so you don’t need to pay for music subscriptions. For films and media, you only really need to subscribe to one service.

Debt

Paying off all of your debts at once might seem counterintuitive if you are trying to save money, but it’s a really good idea. The reason for this is that by paying all of your debts off, you are able to free up money each month and save it. Essentially you will be able to save what would usually go out on monthly debt repayments. Debt repayments often have interest added to them, so the longer it takes to pay them back, the more money you have to pay. It is because of this that it is a good idea to pay all of your debts back at once.

Plan

In order to effectively budget, you need to plan ahead. The best way to do this is to write down all of your monthly expenses, and then work out which ones can be removed, and which can’t. Once you have eliminated excess expenditure and have factored in your monthly food budget, you can create a budget plan. You need to make this plan as realistic as possible. A lot of people, when working out budgets, are extremely strict on themselves. When you are too strict in creating a budget, it can become unrealistic and hard to adhere to.

Magazines

One last thing to consider is subscribing to and reading financial management magazines, journals, and blogs. These publications tend to include a lot of useful information. Many of them have sections dedicated to saving money, which is added to each week. You can also write in and ‘ask the editor’ in many of these publications. A financial magazine won’t cost you a lot and you can derive a lot of benefits from subscribing to one. Some might even be free online.

There’s never been a better time to save money. If you are concerned with the amount of money that you have been spending, then now’s the time to act. Formulating a financial plan and saving money could keep you safe during the current economic downturn.

Tamila McDonald

Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.

Making the decision to retire is a big one. It’s not just about saying goodbye to your working life, but also figuring out how you’ll maintain your quality of life after you stop earning a regular paycheck. For many people, that means creating a retirement plan that includes figuring out how much money you’ll need to live comfortably and how you’ll generate that income. Here are a few financial tips and tricks to help you plan your retirement.

1. Invest in Gold

One of the best ways to ensure a comfortable retirement is to invest in gold. Gold has outperformed stocks in the past, and it’s a much more stable investment than stock market investments. Plus, gold can be used as a hedge against inflation, which means your investment will hold its value better over time. If you want to consider a type of gold IRA investment, do your research to find a reputable gold IRA company. Additionally, you can invest in gold coins or bars as a way to diversify your investment portfolio. It’s important to remember that gold is a long-term investment, so don’t expect to see immediate results.

2. Consider a Reverse Mortgage

If you’re over the age of 62 and own your home, you may want to consider taking out a reverse mortgage. With a reverse mortgage, you can borrow against the equity in your home and receive monthly payments that can help supplement your retirement income. The best part about a reverse mortgage is that you don’t have to make any monthly payments, and the loan isn’t due until you sell your home or pass away.

Additionally, a reverse mortgage can give you some extra financial security by providing you with a line of credit that you can tap into in case of an emergency. This can be a great option for retirees who want to stay in their homes but need some extra income.

3. Make Use of Government Benefits

If you’re a senior citizen, you may be eligible for certain government benefits that can help you during retirement. For example, the Social Security Administration provides benefits for retirees, as well as for those who are disabled or have dependent children. Additionally, many states offer property tax breaks for seniors, and there may be other benefits available depending on your location and situation. Be sure to check with your local government offices to see what types of benefits you may be eligible for. This can be a great way to supplement your retirement income and stretch your budget further.

4. Invest in an Annuity

An annuity can be a great way to generate income during retirement. With an annuity, you make regular payments into the account, and then the annuity pays out a fixed amount of money each month. This can provide you with a steady stream of income that can help cover your living expenses during retirement. There are different types of annuities, so be sure to talk with a financial advisor to see if an annuity is right for you. It’s important to note that annuities are a long-term investment, so you shouldn’t expect to see immediate results.

5. Plan Your Healthcare Costs

One of the biggest expenses you’ll face during retirement is healthcare. It’s important to plan for this expense by researching your insurance options and estimating how much your healthcare costs will be. If you’re eligible for Medicare, be sure to sign up for Part A and Part B coverage. You may also want to consider a Medigap policy to help cover some of the out-of-pocket costs associated with Medicare.

Additionally, you may want to purchase a long-term care insurance policy to help cover the costs of nursing home care or in-home care. It’s important to shop around and compare rates before purchasing any type of insurance policy.

6. Downsize Your Home

One way to save money during retirement is to downsize your home. If you have a large home, you may want to consider selling it and moving into a smaller home or an apartment. This can help you reduce your monthly expenses, such as your mortgage payment, property taxes, and utility bills. Additionally, downsizing can also free up some extra cash that you can use to supplement your retirement income or pay for unexpected expenses.

It’s important to consider your needs and lifestyle before making the decision to downsize your home.

Retirement planning doesn’t have to be difficult. By following these financial tips and tricks, you can make the process a whole lot easier. Just remember to start early, do your research, and consult with a financial advisor to ensure that you’re on the right track. With a little planning and preparation, you can enjoy a comfortable retirement.

Tamila McDonald

Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.