As we are about to celebrate Christmas, no doubt we will all be looking to scoop up the last-minute gifts we need to give our loved ones. It is also a time that we consider making a New Years Resolution or two. I will be looking at starting a new exercise and diet plan, but not till after the Holidays. Another area that we can focus on is how to squeeze out a little more from our budget to contribute more to our retirement accounts. Small adjustments to your budget can make a big difference in your retirement savings over time. Here are three practical ideas to help you start 2025 strong:
1. Split a Meal
Restaurant portions are often more than we need. Splitting a meal with someone can save money while still enjoying the dining experience. For example, my wife and I often share a salad and flatbread pizza at our favorite restaurant. Not only do we save on the meal itself, but also on tax and tip. The average entrée at a sit-down restaurant costs $17–$25, and at higher-end places, prices can easily exceed $30. By splitting meals, you could redirect hundreds of dollars annually toward your retirement savings. Track your savings to see the impact!
2. Skip the Coffee Shop (Sometimes)
For many, coffee shop visits are a daily ritual. But consider making them a treat instead of a habit. During a recent road trip, I treated my family to coffee, and the bill came to $41. At $5 per drink, visiting the coffee shop four times a week can cost around $80 monthly—or nearly $1,000 annually. By brewing at home or cutting back, you could redirect those dollars into your retirement account.
3. Audit Your Subscriptions
Subscription services add up quickly. Streaming platforms, music services, and app subscriptions can easily replace (or even surpass) a traditional cable bill. Take time to review your bank statements, identify services you don’t use often, and cancel a few. You may not even miss them—and you’ll free up funds to boost your savings.
The Bottom Line
Inflation has stretched many budgets, often at the expense of savings. While we can’t control the economy, we can control our spending. Even small adjustments can lead to big gains for your retirement. As my uncle Galen wisely says, “You can play now and pay later, or you can pay now and PLAY later—but you can’t do both.”
Let 2025 be the year you take control of your finances and set yourself up for a more secure future.