A third of San Diego households don't earn enough to cover basic needs, like housing, food and transportation. For a lot of people, money is a constant source of anxiety — especially during challenging economic times.
Here are four ways to squirrel away and save money by financial planner and CEO of Allora Wealth, Mary Beth Storjohann, who recently spoke with KPBS' Midday Edition team. She said when it comes to taking charge of one's finances, "the biggest thing to know is one: you're not alone. And two: you do have to pay attention to them."
Start with what's negotiable
Negotiation isn’t just for the city suits, politicians and business professionals looking to broker a merger, it also applies to our day-to-day finances and billing. According to Storjohann, anything that’s negotiable should be renegotiated.
Utility companies like SDG&E are prime examples where, if you’re going through hardship, you can take advantage of their financial assistance programs.
Think about what's essential to you, and cut where you can, she said. One example is taking inventory of video subscriptions — such as Netflix, Disney+, etc … — and making reductions there.
Storjohann encourages people to find the courage to advocate for themselves, ask for help, and be flexible with nonessential expenses.
Save what you can
Putting money away can be a challenge, especially if you find yourself digging at your savings. Storjohann suggests creating a habit of putting away something even if it's $5, $10 or $25 a paycheck, and to set something automated on payday.
Storjohann recommends putting savings into a high-yield account. Keeping money in a standard bank savings account won’t earn much interest, she said, but high-yield accounts can offer returns of 3% or more.
Set aside a ‘micro goal’
When it comes to saving for events like an emergency, think about a micro savings goal. Down the line, it's important to put away three to six months worth of your paycheck, but first worry about that first $500.
“Getting that first micro goal at that amount set aside, and that will cover small emergencies that could really set you off track,” Storjohann said. “If you can set aside and separate it from your checking account, that’s a great way to get started.”
The money you put away, she said, is to primarily fund emergencies, such as unexpected medical bills or potential car problems.
Find the ‘free money’
One last tip Storjohann suggested is to take advantage of "free money" that comes your way, like your 401(k). You want to go ahead and try to contribute at least up to that matching point your employer offers.
“... The best thing you can do is stick to something that’s diversified,” she said, and try to avoid taking guesses or jump onto whatever the next “hot thing” is.
