Mar 20, 2012

Get the Most Out of Your Money

Money is tight for many people these days. Although it would be great to have more money to invest and spend, a more realistic option is to do more with the money you already have.

Here are some ways to start getting the most out of your money:

Save for Retirement. Start setting money aside for your retirement early, so there will be more time for your money to grow. The longer your money is left untouched, the greater its chance to compound. Try to put as much as you can toward your 401(k), and check with your employer about matching contributions. If you’re already retired, plan your withdrawals wisely to make sure your retirement fund lasts.

Create a Budget. Tax time is a good time to look back at your expenses from the past year. Make sure your spending is in line with your financial priorities. Are there any expenses you can cut to ensure you’re using your money the way you need to?

Avoid Fees. This may seem straightforward, but unnecessary fees can quickly add up and send you into debt. Pay your bills on time and in full. That way, you won’t spend money on late fees or finance charges. It’s also a good idea to plan out your cash withdrawals to avoid paying fees at unfamiliar ATMs.

Invest in a Home. Consider growing equity by purchasing a home instead of renting, if you plan to stay put for several years. Interest rates are still low, so talk with a loan officer at your local Bank of Luxemburg -- you may learn that a house payment will be lower than your rent! If you’re already a homeowner, invest in your current home with regular upgrades and improvements.

Watch the Rates. Try to be on top of loan interest rates, so you can save money on interest over the life of the loan. We can help you determine if refinancing your auto or home loan is a good option. Even a small reduction in your loan’s interest rate would add up to significant savings.

If you’ve been stuck in a financial rut, getting the most out of your money can help you get back on track. Rebecca Edler, Chief Operating Officer at Bank of Luxemburg, recently talked with Amy Hanten about money-saving ideas on FOX 11’s Living With Amy.

Take a look: