Six Ways Your Clients Can Save More This Year

Improving your diet and health are common New Year's resolutions. But improving your financial health needs to be a priority, too.

"What people don't realize is your finances really affect every part of your life - your relationships, how you feel about yourself," says Crystal Rau, certified financial planner at Beyond Balanced Financial Planning. "And so, just like going to the gym and feeling better about yourself, focusing on your finances can really do a lot to have a better year."

Make 2019 the year you take your savings to the next level. Here are six ways to save more this year.

1. Automate everything

You can't forget to save if it's automated. Whether it's your 401(k) contribution taken pretax from your salary, or automatic transfers from your checking account into a savings account or money market account, automating will help you save without even thinking about it.

Lauren Zangardi Haynes, CIMA, certified financial planner at Spark Financial Advisors, says your employer may be able to also split your paycheck so it goes into both your checking account and a savings account.

"And then you can automatically transfer that money to an investment account, or to an IRA, or to a Roth IRA," Zangardi Haynes says.

2. Evaluate your banking

Take a look at your savings account to make sure that you're earning a competitive annual percentage yield (APY). Yields have climbed in the past year, and a number of savings accounts are offering more than 2 percent APY. If you're not earning this, you're missing out on real earnings.

Also, take a look at your checking account. If you're incurring a monthly maintenance fee for going under a required minimum balance, you should be able to find a way to avoid that - whether through a low minimum balance checking account or by having a recurring direct deposit.

Compare savings accounts and checking accounts to make sure you're maximizing yields and minimizing fees.

3. Attack your debt

If you have any debt, make paying this off a priority. The interest you're paying on a credit card is likely a lot more than what you're earning on a savings account. (A balance transfer cards or ones with zero percent introductory periods are exceptions.)

"If you have any credit card debt, you need to pay that off immediately without even considering anything else," says Amy Hubble, Ph.D., CFA, certified financial planner at Radix Financial LLC.

There were four Federal Reserve rate increases in 2018. Each of those increased the Wall Street Journal Prime Rate, which directly impacts most variable credit card annual percentage rates (APRs). These increased the amount of interest paid on credit cards, if you have an outstanding balance.

4. Maximize your cash back

When you make your purchases in 2019, make sure you're maximizing your savings and cash back.

Weigh whether you'd be better off earning more cash back with a credit card that has an annual fee but higher cash-back rewards, or a no-annual fee card that has a lower cash-back percentage.

Credit card shopping portals are also places where you can potentially maximize your cash back. By going through your credit card's website or through a site such as Ebates, you can potentially earn more than your usual cash back. On a site like Ebates, you're earning cash back in addition to what you earn on your cash-back credit card.

5. Evaluate your budget

The new year is a great time to make sure you're not overpaying or paying for monthly items that aren't being used. Go through your budget - or monthly expenses if you don't have a budget. It's easy to start a budget - and it can help you maximize your savings. See if there are areas of opportunity, such as cutting back on dining out or on coffee or other spending, that adds up over time. Also, go through your budget and try to renegotiate items, Rau says.

"I check our insurance just to make sure we're still getting the best rate for the coverages that we're carrying," Rau says. "It's just about doing a reset every year, just to make sure you're getting the best deal and you're taking advantage of all those things that are offered to you."

Even though open enrollment likely already happened for 2019, you may be able to adjust some options - such as how much you contribute to your employer-sponsored retirement plan, like a 401(k).

Adjusting your withholding for taxes or how much you're putting away for retirement - which may reduce your taxable income - is a way to potentially save money, Rau says. Consult with a tax adviser to make sure that your strategy makes sense to save money on taxes.