Funding your future

The meat and potatoes of budgeting

"Begin with the end in mind"- Stephen Covey

Understanding your spending habits can help you find areas where you can conserve, and find more funds for retirement savings. If you don't have a budget, or if you haven't reviewed yours in a while, use our tips and tools to help identify what you spend, so you know where you can save.

The meat and potatoes

The leftovers

What are you doing with the leftovers (and we hope you have some left over)? You can throw them away (by purchasing things you don't really need), or wrap them up for later (by saving for retirement.)

If you think your leftovers are not enough to direct toward retirement, here are some ideas to bolster your savings:

Eliminate some of the "wants"

• Look at your expenditures from #2 above. What can you do without?
• Do you really need that special coffee? Consider saving the $4 you spend every day, and put that money in your 401(k). If you think it won't make a big difference, think again: over a 30- day period, you'll save $120. Over a year, that adds up to $1,440. That's a nice addition to your 401(k).
• Do you need all of the premium channels on cable? Consider reducing the level of your cable service.
• Do the extra features on your phone service such as caller ID or call forwarding provide you a benefit worth the cost? Some economic gurus even suggest eliminating your cell phone - after all, we lived without them once upon a time. If you can't do that, then consider purchasing pre-paid minutes and getting rid of expensive unlimited plans.
• Renting a movie once a month instead of buying tickets and snacks at the theatre could save over $40 each month for a family of four.

Pay off your debt

• This probably goes without saying, but just to reiterate what we've all heard before: pay off your debt. One suggested strategy is to direct as much money as you can toward the debt with the highest interest rate first (usually a credit card).
• Once that's paid off, apply all of the money you were paying on that debt to the next bill on your list, and so on, until all of your credit cards, personal or student loans and other debt are eliminated.
• Then consider directing all of the money you were spending on debt toward your retirement savings.
• Don't get into more debt by borrowing from your 401(k).

Other quick hit savings ideas

• Look for "free days" at your local museum or zoo. Direct the money you saved toward paying a little extra on your credit card or car payment. Even small savings can add up over time.
• Scour the Sunday paper or Internet for coupons, but only use them on products you would normally buy - otherwise, you're spending extra on things you wouldn't usually purchase. If you conserve $10 or $15 (or more!) on your grocery bill, then put that money toward a bill or into a savings account.
• Keeping your car just one extra year may save you hundreds of dollars by avoiding higher insurance costs, increased property taxes and interest on a loan.
• Experts estimate you can save between 2% and 3% on heating bills for every degree you lower your thermostat in the winter.

And finally - the dessert

By reducing debt and increasing savings now, you have the opportunity to accumulate more money for your future. If you're getting close to retirement, living on a budget now will help you get accustomed to eliminating unnecessary expenses and living on a specific amount of money.

The goal of all this is to get you to a point where you can comfortably retire one day. With that end in sight, it is easier to begin.

"Begin with the end in mind." - Stephen Covey

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

Recordkeeping and administrative services for the plan are provided by J.P. Morgan Retirement Plan Services LLC (JPMRPS); securities transactions for the plan may be introduced by J.P. Morgan Institutional Investments Inc. (JPMII). Member FINRA/SIPC. JPMRPS and JPMII are affiliates of J.P. Morgan Chase & Co.