Staying Fit
Pay off your smallest credit card balance first. It will motivate you to go after the other cards.
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We all can come up with plenty of reasonable excuses for not saving for retirement. The big one is thinking we don’t have enough money to put aside.
But if it’s hard now to make ends meet and save, think of how hard it will be to live on just Social Security, which may replace only about 40% of your income when you retire. You’re going to need more than that — some experts say at least 80% is required — so it’s a good time to come up with ways to sock money away. Here are five tips to get you started.
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Get a handle on credit card debt
Are you carrying debt on credit cards? Call the companies and see if they’ll work with you to lower the interest rate you’re paying. That way, more of the payment you make will go toward what you actually spent and not on paying interest.
If you have debt on several cards, consider targeting the one with the smallest balance first. You’ll feel great when it’s paid off, and it may give you the boost you need to go after the other cards.
AARP has a Credit Card Payoff Calculator that helps you figure out what it will take to pay off your credit card debt.
Cut your spending
If you’re spending more each month than you're taking in, you can turn it around. Find ways to cut costs. For example, pack your lunch instead of buying. Avoid purchasing things you want but don’t need (especially if it means putting those purchases on a credit card). Cut utility costs by turning off lights when leaving a room, raising or lowering your thermostat, and weatherproofing doors and windows. If you stop for coffee or tea several times a week, try making it at home. These simple changes can save hundreds or even thousands of dollars.
Find more cost-cutting tips here.
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