Small Changes Still Add Up

Money Savings Growth

Americans are spending less and stashing away more cash than ever, but healthy financial habits are still essential.

According to the U.S. Department of Commerce, people were saving about 7.5% of income before the COVID-19 pandemic and now are socking away 14%. People may be saving more because of fear of job loss or because they’re spending less on extras like a fancy cup of joe.

Our habits have a more significant impact on our savings goals than we think, and there’s nothing like a pandemic to cause us to build a bigger nest egg. Without basic money skills, it’s easy to make poor financial choices regardless of how much money you make. The key to lasting financial fitness lies in a foundation of healthy spending and saving habits.

While you may be confident that your new spending and saving habits are for the long term, there are a few things you may want to keep in mind to stay on track. With time and consistency, small changes still add up and can make a big impact on your financial future. 

Pre-COVID-19, did you know the average American spent $1,200 each year on coffee, and 41% of Americans spent more on coffee than they put into savings? This doesn’t mean you can’t still support the local economy and stop by once a week to see your favorite barista. Just remember, most of us have items in our monthly budget that seem small but add up. For example, running to the convenience store for your daily afternoon snack may not seem like much, but $3 a day can greatly impact your bank account over time. 

COFFEE

Monthly: $40

Annually: $500

LUNCH

Monthly: $100

Annually: $1,200

Time is a powerful multiplier. Making coffee at home or packing your lunch a few days a week can give your savings accounts a big boost when invested right. You’ve seen how tiny changes make a difference in contributing to your savings goals! 




Let the Nextep retirement team partner with you to help make your retirement savings goals a reality. Visit the retirement section in your Nextep account to log in and ensure you’re on track to a stress-free retirement, or reach out to us at 401k@nextep.com

Also on Nextep

Is your pet insured? How about your identity? We all know the value of the major benefits, such as health, dental, vision, life, telehealth, and disability. But what about some of the lesser-known benefits? You and your employees may be missing out on some significant advantages. Pet Insurance Protect your pets with pet insurance options. […]
Read more
Federally-Approved Qualifying Events You may have heard the term “federally-approved qualifying event” when making changes to your health benefits outside the open enrollment window. Here’s a quick rundown of what that means. Any tax-free employee benefits fall under Section 125 of the IRS code. Because the IRS regulates these benefits, employees are only permitted to […]
Read more
8 Easy Ways to Save Money on Health Care Costs Admittedly, there are many things out of your control when it comes to healthcare costs. But, there are still steps you can take that add up to more dollars in your pocket. Following these tips can help save money on health care costs. Use preventive […]
Read more
Virtual doctor visits via telehealth are on the rise We’ve long touted the benefits of telehealth. These virtual doctor visits, conducted via phone or video rather than in-person, are a great way to get help for several health issues. Commonly handled diagnoses include Allergies Bronchitis Earache Sore throat Sinusitis Tobacco cessation Pink eye Strep throat […]
Read more
At Nextep, we know the end of the year brings taxes top of mind for many. It also may be easy to forget about 2023 benefit limits that can impact your taxes.  Partnering with a PEO like Nextep means you can easily get all the details you need. Here is a cheat sheet of some […]
Read more
The IRS has released FSA and HSA limits for 2023. A flexible spending account (FSA) allows you to deduct a set amount of pre-tax money from each paycheck to pay for certain IRS-qualified out-of-pocket health expenses, such as medical copays, dependent care, prescription drugs, transit, and parking. Aside from the annually allowed rollover amount ($610 in […]
Read more
While Nextep always offered personalized benefit support to your people, we’re taking it to a whole new level with Health Advocate! Nextep clients and their employees will always get an optimal benefits experience with one-on-one consultations to manage their health questions.  “I’ve personally experienced the headache of trying to choose the right benefit plan for […]
Read more
Finding a PEO can be a daunting task. You should feel confident in your partnership with Nextep or any PEO for that matter. To ensure you do, we’ve put together a short checklist of questions to ask in your meetings with PEOs.  1. What accreditations and certifications do you hold?  A few credentials you’ll want […]
Read more
“[Switching to] Nextep was a no-brainer. The costs are better and the amount of personalized attention and follow-up we received right off the bat was really impressive. With Nextep, we’re not just a number. Nextep is so responsive to our questions and our needs. We didn’t have that in the past with our previous provider.” — Yaicha, […]
Read more
Telehealth services like Teladoc® can provide 24/7/365 access to a doctor by web, phone, or mobile app.  Whether you have a minor illness or a chronic condition, telehealth has become an essential tool for many employees by saving them time and money. A National Library of Medicine study shows people using their telehealth are more engaged in their health care. […]
Read more
With a vast range of individual and family situations, it’s essential to provide benefits that meet your employees’ needs wherever they are in life.  Much like your workplace policies, your employee benefits should align with your diversity and inclusion (D&I) goals. Look at your benefits annually and ask yourself if they reflect your workforce’s needs, […]
Read more
Even before the pandemic, no one wanted to sit in a doctor’s waiting room feeling ill or with a sick child.  Now, with COVID-19 cases on the rise and winter’s seasonal illnesses upon us, it’s more important than ever to have a telehealth option for your employees.  At Nextep, we partner with Teladoc® to offer […]
Read more

Download Our App