2019 is a year of more startups and financial shifts. With the graph of the economy, the stability is out of the question. Though the recent changes about the Public sectors merging have set for more economic stability, we have a long we to go.
But here are the best tips to carry forward to the year 2020. These financial tips could help you save money from unwanted budgetary, taxes, expenses and from unrelated scams and the unwanted e-commerce scams.
A pre-planned and preparedness can help manage and save better. Could be to save on education debt, save more and add on to the retirement savings as well.
And attune our income towards better investment and more on what one needs to know before investing.
Holiday Shopping and how to master the budget?
Consumers are expected to spend around 5% more this year, with the average gift-giver shelling out Rs. 52,000, according to some surveys.
But being able to afford those gifts for all of your loved ones can be difficult.
Especially if you have a tendency to spend on yourself while also shopping for others.
More for Retirement Savings
Resolve to save a few more coins in your retirement accounts in 2020. When investing, make sure to set apart the retirement plan.
Quite often, the question prevails clouding our focus thoughts, is it too late to save for retirement at age 50?
If you didn’t make saving for retirement a priority early in life, it’s not too late to catch up. At age 50, you can start making extra contributions to your tax-sheltered retirement accounts (called catch-up contributions).
Just keep in mind that tapping your 401(k) or IRA before age 59 1/2 will cost you.
Read More: 5 Money Rules To Increase Your Net Worth
The IRS has raised the employee contribution limit for 401(k), 403(b) and most 457 plans to $19,500, up from $19,000 in 2019.
If you’re 50 or older, you can sock away another $6,500 in that workplace retirement plan. That’s up from $6,000 in 2019.
The contribution limit for individual retirement accounts, whether traditional or Roth, is holding steady at $6,000, plus another $1,000 for savers 50 and over.
The unexpected! – Health Plan
The best way to save on the cost of health insurance is to use the plan that is provided through your employer.
It is far easier to buy health insurance when you’re young and employed. Here’s why the eligibility criteria are easily satiated.
The cost of insurance at advanced ages is prohibitive and the eligibility to purchase insurance sharply declines.
In 2020, you can save up to $3,550 if you’re an individual with self-only health coverage. That’s up from $3,500 in 2019. Account-holders with family plans can save up to $7,100 in this account (up from $7,000 in 2019).
Read More: How do you view your money?
Gifts and inheritances
Everything comes into our lives with a condition attached to it. There is one sum of money that comes as a blessing through inheritance. The clause comes along with the money, tax.
Yet, the best way to evaluate your financial situation is to hire a financial advisor who can objectively help you manage your wealth.
- Young adults who receive large inheritances should hire a financial advisor first thing. If your parents had one, they are usually a better option because they already understand the situation. You may even know them personally.
- The absolute worst thing someone can do is to go out and spend money lavishly. Get your affairs in order first, and then squander only what you can afford to live without.
- Investing can seem intimidating, which makes it wise to hire an investment advisor to guide you to a secure financial future.
Read More: Money Saving Tricks for Students
Investments on Autopilot!
When you can have a good measure of what you have, you can manage better what you have.
If you have a lump sum sitting around that you want to invest, then do it. Get it into the market and don’t worry about spreading it around and definitely don’t try to time the market or wait for the right time.
For the rest of us, an automatic investment plan makes sense for two reasons:
- It lets you invest on a regular schedule.
- It prevents self-sabotage.
Read More: 6 Ways to Make Money While You Sleep!
Ask people who are successful at saving and building wealth and you’ll find that many of them have two things in common:
They invest, rather than leaving all of their cash in a bank account.
They pay themselves first.
I’ve recommended paying yourself first as a strategy for building cash savings for emergencies, and you can do the same thing with your investments.