Save Thousands 30 Minutes at a Time

It may be easier than you thought to find ways to save money in your spare time. These are the best steps to take to find thousands where you’d least expect them.

1. Find deductions hiding in your closets.

Clean out your closets and take the items you no longer want or need to your favorite thrift store. Your donation will be considered a tax deduction. This strategy helps in two ways. Not only do you get a deduction that can lower your tax bill next year, but you’re also making space just in time for holiday gifts.

2. Dump your stock losses.

If you have some stocks, grab a cup of coffee and spend a few minutes reviewing your portfolio. Are any constantly underperforming? If so, now is a perfect time to dump them. You can deduct up to $3,000 in losses from your income. For some taxpayers, that’s enough to save them as much as $1,000 at tax time.

3. Beef up your retirement savings.

Take some time to review your retirement accounts and see if you can afford to contribute a little more. For 401(k) and 403(b) accounts through your workplace, you can contribute up to $18,000, which can be deducted from your taxable income. If you’re 50 or older, a catch-up contribution option of $6,000 means you can contribute up to $24,000 per year.

4. Check in with a pro.

Meeting with a financial pro will probably take a little more time than the other steps, but you only need about a half hour to find someone and make an appointment. Having a fresh set of eyes looking at your finances will prove to be helpful in identifying new ways that you can save. It can also give you motivation to stay the course when it comes to sticking to spending and saving goals.

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