This is the fourth post in a series of five that will focus on saving money in the areas where you spend the most…
Personal insurance and retirement
You might be tempted to cut back on your 401(K) contributions to pay off debt, but that’s not a good idea, if you can possibly avoid it. Most companies with 401(K) plans offer matching funds, so failing to contribute means you lose out on free money. Here are better areas to look for savings:
- Consider refinancing your term life insurance; rates have dropped in the past decade so you might be able to qualify for a lower premium
- If you have a long-term disability policy, investigate the savings if you opt for a longer waiting period to reduce premiums (if you have an emergency fund)
- Suspend contributions to annuities and other accounts that don’t offer matching funds or tax breaks
