Money Tips from 401(k) Complete
Impact Your Financial Security
With inflation still hovering around 6%, it can feel daunting to get household finances under control. 401(k) Complete, an offering of Waverly Advisors, is a unique comprehensive retirement plan solution, ready to help you navigate through some tough financial decisions.
Below are a couple of steps you can take to look at your spending and see where your next dollar spent can have the greatest impact on your financial security:
- Review your monthly spending – Remember that workout app that you signed up for in the new year and haven’t opened for two months? Maybe you subscribed to Paramount+ and forgot about it after binging every episode of Survivor. A 2022 CNBC survey1 revealed 42% of Americans had forgotten they were still being charged for a subscription they no longer use. 30% of Americans underestimated their subscription spending by between $100-$199.
- Emergency Savings – A recent study2 shows 56% of Americans cannot cover a $1,000 emergency expense. Start by growing your savings to at least $1,000. Then put in place a plan to grow your emergency fund to 3-6 months of your living expenses. By trimming down on forgotten subscriptions and putting those savings in to your emergency fund you can help put up defenses against credit card debt in the event of an emergency.
- Pay down credit card debt – The average interest rate on credit cards these days is 23.65%3. However great compounding interest is when it is working for you, it can be just as destructive to your financial health when you have it working against you if you are carrying a credit card balance.
- Set a goal to increase your contributions to your 401(k) plan – Starting to contribute to your 401(k) is a great step in the right direction towards securing the lifestyle you want in retirement. Moving forward, challenge yourself to save a little more each year. An increase of even 1% annually can make a big difference in achieving your ideal retirement.
You should not assume that any information provided serves as the receipt of, or as a substitute for, personalized investment advice from Waverly Advisors, LLC (“Waverly”). This article reflects information available at the time it was written, is not intended to provide tax or legal guidance, and should be used as a reference only. Talk to your Waverly advisor, or a professional advisor of your choosing, for the most current information or for guidance specific to your situation. A copy of Waverly’s current written disclosure Brochure discussing our advisory services and fees remains available at https://waverly-advisors.com/ADV-Part-2A-Brochure.