As the economy softens and the government shutdown drags on, people are getting increasingly anxious about their financial affairs.
Fortunately, with a little bit of work, you can often find money leaks in your life that, if fixed, can save you money.
Here are some of the biggest leaks that may have escaped your attention:
Audit Your Streaming Apps
How many streaming apps are you paying for right now? If you’re like our household, it’s as many as half a dozen!
Do you really need all of them right now? In our case, we were able to cut out a few of them and save ourselves a little bit of money. We then binge-watch whatever shows we enjoy on the remaining services and can cycle them in and out as needed.
If you do need all the streaming services, consider attempting to cancel them to see if they will give you a retention offer. This is usually in the form of a monthly discount or other incentive to get you to remain a customer.
Earn More Interest on Savings
If you have a savings account with a major nationwide bank, you are likely getting a tiny interest rate on your savings account. Many of the well-known banks offer only 0.01% APY on savings accounts.
This is a huge money leak because you should be getting much more, somewhere in the neighborhood of 3-4% APY. High-yield savings accounts often pay those rates, plus have no minimum balances and no monthly maintenance fees.
These high-yield savings accounts can help you earn more interest without any hassle.
Shop Around for Your Insurance
If you haven’t shopped around for your homeowners, auto, and umbrella insurance policies in the last year or two, you may be overpaying. Insurance is something you can comparison shop fairly easily and find out whether other companies will give you the same policy for less.
You can also reach out to your current insurance policy provider and ask if there are ways to reduce the cost. There may be discounts they can apply or programs you can join that will lower your premiums.
Review Your Tax Withholdings
When you started work, you submitted a Form W-4 that told your company’s human resources department how much of your earnings to retain for income taxes. If your life situation has changed, you may wish to revisit the Form W-4 and adjust it so the company is withholding the proper amount.
The IRS provides a useful tax withholding calculator you can use to determine the proper amount. By doing this, you ensure that you aren’t letting the government hold onto more of your money than necessary.
Maximizing Company Benefits
Have you looked at all the benefits your employer has available? Are you taking full advantage of those resources? This could be something as simple as a 401(k) company match or a Flexible Spending Account; make sure you’re taking advantage of them.
For example, some companies offer commuter benefits but don’t do a great job of publicizing them. Some companies that offer this may reimburse you for bus or rail passes, while others may give you a certain number of emergency rides on Uber and Lyft. Talk to your HR and get a full list of benefits so you can maximize them.
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