BOSTON (CBS) – Before we start, for the record I am a card carrying member of AARP. And I do read their publications.
In their most recent Bulletin they have an article 99 Great Ways to Save. This is the 4th year they have generated such a list. Some of the suggestions are good and some just not practical, like making all your kids wear white socks. When they lose a sock or wear a hole in it, keep the other as a spare.
So I thought I would share some of them with you and also give you my take on them.
#1 Big Bills: Convert money into $50 bills. You’ll think twice before spending them.
Dee: This just might work. I have seen signs in stores where they will not accept $100 bills. Not sure about $50.
#2 Find Your Pension: Check the U.S. Pension Benefit Guaranty Corporation directory for unclaimed pensions.
Dee: I would hope if you worked at a place long enough you knew you had pension and had the paperwork somewhere for safekeeping.
#3 Shop for Savings Rates: Compare savings rates before making a deposit.
Dee: If you have $5,000 or more to deposit you can get a 1% rate. None of the banks mentioned at Bankrate.com are local banks. And if you have $5,000 or more I would suggest you consider a money market fund with check writing privileges.
#6 Catch-Up Time: If you are over 50, you can contribute an extra $5,500 to your 401(k) plan as a catch-up contribution for this year.
Dee: First you would have had to max out your annual contribution which is $17,500 and then come up with an extra $5,500 for this to work. Less than 6% of workers can max out their contributions.
#7 Save on Sales Tax: Check if your state has a sales tax holiday.
Dee: It does make good sense to wait if you can to buy that big screen TV, but if your washer goes you are not going to a laundromat twice a week until Massachusetts votes in a sales tax holiday which, if it happens, is usually in August.
To read the entire list click on 99 Great Ways to Save.