Building wealth isn’t only about saving and investing. I’ll explain in this week’s Money Minute.
Make a doctor’s appointment — and keep it.
Our grandparents will spend nearly a quarter million dollars on healthcare after they retire. By the time we’re in our 60s and 70s, it could cost even more than that to stay healthy. If we invest in our health when we’re young, we’re indirectly investing in our wealth later. So get that annual physical and go ahead and book that six-month teeth cleaning. Your 70-year-old self will thank you.
Go to sleep early.
When you’re sleep deprived you’re more likely to make impulse decisions...and that makes it really hard to stick to a budget. You’re too tired to walk, so you take a cab. You’re too tired to work so you buy a double espresso on your lunch break. Getting extra shuteye can also make you more productive at work. And we all know impressing the boss is the best way to get a raise.
Make an extra loan or credit card payment.
It seems counterintuitive, but sometimes you have to shell out money to build wealth. The faster you pay off those student loans, mortgage or credit card bill, the slower interest will accrue. So, really, spending money is helping you save money. Get creative and see if you can squeeze in an extra payment today. No extra cash lying around? Sometimes there are hundreds of dollars hiding in your own home. That cash is usually hidden in the form of gently worn clothing, shoes, children's toys, uneeded furniture and appliances you can sell for cash on sites like eBay, ThredUP, Craigslist, or swap.com.
Log on to your retirement plan’s website and boost your savings rate by 1%.
Some retirement plans offer to boost your annual savings automatically each year. You just decide how much of a boost you want — even a 1% or 2% bump can make a huge difference over the long-term. You probably won't even notice when a tiny extra sliver of your paycheck goes missing. Unfortunately, not every retirement plan offers an auto-increase function, so check with your plan provider first.
Cook dinner at home tonight.
Look, it’s ridiculously hard to lower major expenses like your rent or commuting costs. You kind of need a roof over your head and most of us need a way to get to and from work. If you’re looking for more room in your budget, start in your kitchen. Your waistline AND your wallet will thank you. People who eat and cook at home are more likely to eat fewer calories (less food) and healthier foods. Less food consumed = less money down the drain. No need to drive yourself nuts trying to cook every meal from scratch. You will get overwhelmed and you’ll be back to that Seamless app in no time. Start with dinner tonight. Cook something. Cook anything. And take the leftovers for lunch tomorrow.
Mandi Woodruff is a reporter for Yahoo Finance and host of Brown Ambition, a new podcast about career and finance.
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