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Is Getting Your Finances on Track a Goal this Year?

Here are some tips from the pros

The holiday season can be wonderful, but it can also be expensive. According to World Atlas, Gallup, and other pollsters, the average American spent $830 on holiday gifts in 2015, up from $720 in 2014. Plus, they paid another $1,200 for Christmas trees, greeting cards and postage, floral arrangements, decorations, food and candy, and travel.

10 Tips for Saving Money in 2016*

According to a report by Statistic Brain Research Institute, money goals came in third on the list of resolutions this year. To help you get your finances on track, here are a few tips from the pros.

  1. Review your current financial situation so you know where your money is going. Take a good look at your spending patterns for a week to see what you can begin to cut out. Create a budget. Even small steps can have a dramatic effect on your finances.

  2. If you share finances with someone, set up a monthly date to review your current finances and what you want to work on together.

  3. Invest in your health. Watch what you eat, exercise, see your doctor regularly. Focusing on health can save on medical expenses. Also make sure you are properly insured in case of any medical emergencies.

  4. Use tax refunds (or bonuses or raises) to create or increase an emergency fund. Statistics show more than 60% of adults have no emergency savings and less than $1,000 in a savings account. An emergency fund can help break the cycle of debt and build financial security because it's more cost-effective to dip into your savings rather than use credit in an emergency. Be sure to build the fund back up again if you do need to dip into it. Note: In 2016, the deadline to file a tax return is Monday, April 18th, not April 15th.

  5. Set up automatic deposits from a checking account or paycheck into a savings account. It's easier to build up savings if you don't have to think about it.

  6. Use savings apps that make it easier to protect your bank accounts from fraud and help save you money. Examples include BillGuard, an app that flags fraudulent or erroneous charges and Key Ring, which collects your loyalty cards digitally so you can enjoy savings even if you leave your cards at home.

  7. Pay off credit card debt. Aggressive lending can keep you in long-term debt. Identify which credit card has the highest interest rate and pay it off first. If you can't pay your cards off, pay double the minimum payments whenever possible.

  8. Plan for the future. Review your life insurance coverage with your Mutual Trust Insurance Advisor and create a living will. If you don’t have an advisor, click here to find one.

  9. Cut back on shopping for things you don't really need and save for a trip you've always wanted to take. Research shows people are less regretful when paying for experiences. Also consider planning family activities that don't cost any extra money, like cooking dinner together, or volunteering.

  10. Discipline yourself to give up something. We all have something we can give up—a latte, soda, brownies, or dinner out. If you go without something for a while you will either learn to appreciate it more or realize you don't need it.

*GoBankingRates.com, International Business Times and The Wall Street Journal.


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