Spring is the time when many people tackle cleaning and tidying projects they have been putting off. But have you thought about taking your spring cleaning beyond your living space? You might need to declutter and deep-clean your home—but spring cleaning your finances is also crucial. Organizing your finances for a healthier 2021 can help you save for the long term and prepare you for a stronger retirement.
Here, leading precious metals distributor U.S. Money Reserve explains how you can get your finances in better shape for 2021, including how to open a gold IRA account (or roll over existing funds into one).
1. Evaluate Your Spending Habits.
An important step in spring cleaning your finances is to evaluate how you can streamline your spending habits. Assessing your income and outgoings could give you a good overview of your finances so that you can see where to make cuts. And you might surprise yourself: USA Today reported in 2019 that the average U.S. citizen spends roughly $18,000 on nonessentials every year. Meanwhile, NextAdvisor estimates that you could save between $1,000–2,000 per year by cutting back on takeout coffee alone. You can evaluate your spending habits in a spreadsheet or simply download a tracking app to do the work for you.
2. Set Up an Emergency Fund.
What if you put the money you usually spend on nonessential items and expenses into an emergency fund? We have already seen that our lives can turn upside down overnight. And if we do not have the funds to support ourselves through rough patches, life can get difficult. The earlier you contribute to an emergency fund, the better protected you will be if you lose your job or fall ill—even if the contributions are small. It is a good idea to save enough to cover your necessary expenses for three to six months so you can maintain financial stability during an emergency.
3. Save Your Tax Refund.
When you receive a tax refund, you can be tempted to spend it immediately. But have you thought about using the check to ramp up your IRA? Rather than spending the money on material items, you could protect your finances and help buy yourself peace of mind so you can avoid being strapped for cash in the future.
4. Save Money by Completing DIY Projects.
Another great way to cut costs and make bigger IRA contributions is to revamp your home through DIY projects instead of paying for professional renovations. Not only can you save money with a do-it-yourself approach, but you can also stamp your personality on your home’s decor. And the savings can be staggering. For example, the personal finance experts at NerdWallet have found that the average cost of a DIY kitchen renovation is $22,000 less than a professional job.
5. Negotiate Your Bills.
Many of us shop around for the best deals when booking services, but have you asked your providers to negotiate the amount of your bills? Whether you are booking video-streaming services or broadband or paying for insurance, there is no harm in asking for a rate decrease. And if you don’t feel comfortable asking, you could always enlist help from a professional negotiator like BillFixers, BillAdvisor, Billshark, or Truebill. The savings you could gain from negotiating your bills can provide fantastic additions to your IRA.
6. Choose Your Assets Based on Your Tolerance for Risk.
Given the events of the last year, now may be a good time to revisit the assets in your portfolio. While Bitcoin and other cryptocurrencies can be volatile—with wildly swinging prices and a public warning issued by the U.K.’s Financial Conduct Authority about their risks—precious metals have a more established track record and can serve as a hedge against inflation. As a vehicle for storing wealth, gold and silver coins can offer a safe haven in the form of tangible assets that are recognized worldwide.
7. Open a Gold IRA.
Over the past year, it is no surprise that self-directed precious metals IRAs are growing in popularity with U.S. Money Reserve’s clients. These IRAs can give you flexibility when it comes to safeguarding your future and controlling your asset mix. While traditional IRAs are mainly limited to approved stocks, bonds, and mutual funds, you can store precious metals in a self-directed IRA.
And although many retirement accounts can come with high fees and limited options, precious metals IRAs allow additional options for portfolio holders. Instead, these accounts combine the protection of gold and silver with all of the conveniences of a modern IRA. This way, you can help protect your wealth and expand your hard-earned funds in the years to come.
Whether you transfer your existing funds into a gold IRA or contribute to your ongoing 2021 savings, it is possible to diversify your portfolio with precious metals. This is important because paper assets are closely tied to the value of the dollar, meaning a financial crisis can have a huge impact on the profit potential of your cash savings. But gold typically moves inversely from the direction of mutual funds and equities, making it an ideal retirement portfolio diversifier.
About U.S. Money Reserve
Over the last 20 years, U.S. Money Reserve has helped more than 550,000 clients looking to protect their wealth with precious metals. The highly regarded distributor provides a diverse range of coins and legal-tender precious metals, which are backed for purity, weight, and content. Thanks to U.S. Money Reserve’s immense buying power, clients have access to some of the highest-quality precious metals in the world. As a result of its excellent customer service, the company has received a coveted AAA rating from the Business Consumer Alliance and an A+ rating from the Business Better Bureau.
Learn more about how U.S. Money Reserve can help you set up a gold IRA.
