Culture

Travel

Milestones

Overview

Fraud

Financial Pathways

Take a new approach to managing credit, savings and making smarter financial choices with expert advice from Life and Money by Citi.

Money

Well-being

Credit Cards

Banking

Lending

Investing

Citigold®

Citi Financial Pathways

Around the world, Citi has strategic locations where our employees go to work each day to support our core businesses and drive solutions for our clients. 

Products and Services

NavBar

Home

FooterNav

Shopping wisely and making smart spending decisions isn't exactly easy in the best of times, and during times of inflation, it's particularly challenging. But regardless of the economic climate you're in, finding ways to save for your retirement is always worthwhile — it may just take some behavior-shifting.Right now, signs are pointing to economic recovery. Inflation, the term that describes the increase of goods and prices rising all at once, is currently hovering around 4%, according to the U.S. Bureau of Labor Statistics — it's eased considerably since the summer of 2022 when it peaked at 9.1%, though rents and mortgages are still relatively high. <a name="_Hlk139981363"></a>If you're struggling with recent price hikes, you may be tempted to cut back contributions to your 401(k) or to stop putting money into your retirement altogether, but that may not be the best idea. After all, saving less may just make money tighter when you really need that retirement fund. Whether you're feeling overwhelmed by rising costs or have already adjusted, here are some money moves you can make today to keep working toward your retirement goals tomorrow.<h2>Improve your cash communication</h2>If you're managing money carefully, that's great, but you're at a disadvantage if your spouse or partner isn't doing the same. (You may start to feel as though you're bailing water out of the boat, and your companion is scooping it back in.) If you have teenage kids or other household members spending money, be sure to loop them in, too. It's a good way to help teach them smart habits for them down the line. You can do this in a variety of ways:<ul><li>Make a point of having regular (daily, weekly or monthly) semi-formal conversations about your biggest expenses and the things your family needs to save up for, such as college tuition, vacations or home improvements.</li><li>Create a shared family budget document that you all can access.</li><li>Come up with budget "challenges," for the family, such as a no-spend week, and maybe even offer small cash prizes or gift cards for the family member who saves the most or spends the least.</li></ul>This type of group clarity is motivating. "In my experience, the most common mistake people make when saving money is not setting clear goals," says Mario J. Payne, a certified financial planner and financial advisor and founder of TOAMS Financial in Jacksonville, Fl. "Whether it's for retirement, a down payment on a house or an emergency fund, having a specific goal gives your saving efforts direction and purpose," he adds. "It makes the process more rewarding and helps you stay disciplined, even when faced with tempting spending opportunities."<img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/smarter_spending_body-2_1347491040.jpg" alt="A woman adds change to a glass jar" class="right_image" /><h2>Buckle down and budget</h2>We often groan at the word budget as though it's a sign we're not doing well financially. But <a href="https://www.lifeandmoney.citi.com/lam/articles/money/managing-money/how-to-create-a-budget">creating one</a> is actually proof that you're aggressively trying to grow your wealth. You can budget in a number of different ways, but here are a few popular strategies:<ul><li>The 50/30/20 budget. With this approach, also known as a "pay yourself budget," you put 50% of your income toward needs, 30% toward wants and 20% toward savings and debt. "It's a classic strategy that still surprises me with how underutilized it is," says Payne. "The idea is to treat your savings like any other bill. It should be a non-negotiable part of your budget."</li><li>Cash jar or envelope system. This method can be tricky to pull off in a digital age, but the idea is that you put your money for each expense into one envelope or jar so you don't inadvertently spend cash allotted for, say, your utility bill or the beach getaway you're planning.</li><li>Zero-sum budget. With this strategy, whatever is left over after you pay your monthly expenses either gets invested, goes toward paying off debt or is moved into an emergency fund.</li></ul>Whichever style of budget you choose, it's bound to be helpful. Whenever you systematically keep track of how much you're spending, you're more likely to notice patterns that can help you figure out where to cut back, such as repeat services or monthly subscriptions you rarely use. Budgets also are more likely to work when they<a href="https://www.lifeandmoney.citi.com/lam/articles/money/savings/saving-money-hacks"> fit your personality</a>. If you are somebody who worries about falling short on expenses, a cash jar or envelope system may be perfect for you. If you're more of a big-picture person, the 50/30/20 budget may be your thing.<img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/smarter_spending_body-1_1467917312.jpg" alt="A woman compares the price of clothing items in a store" class="right_image" /><h2>Get smarter about spending</h2>In the time-crunched world we're living in, it's not always easy to be mindful about where our money is going, and retailers often take advantage of that, says Trae Bodge, a New York City-based shopping consultant who runs the blog TrueTrae.com.Impulse shopping is one of the biggest issues when it comes to wasting money, Bodge says, adding, "Retailers are very good at enticing us to shop and creating a sense of urgency, so I always encourage shoppers to take a beat before clicking 'buy' or checking out."Comparing prices and searching for coupons are always smart steps before purchasing, and beyond that, these small moves can have a big, bottom-line impact:<ul><li>Join a warehouse club. These programs often entail upfront membership fees, but if you do a lot of shopping, buying in bulk can save you money in the long run. Plus, warehouse clubs frequently offer deals on travel, tires, gasoline, hearing aids, eyeglasses and appliances too.</li><li>Join a "<a href="https://www.lifeandmoney.citi.com/lam/articles/culture/eco-friendly/How-you-can-become-more-sustainable-in-your-everyday-life">Buy Nothing</a>" club. There are outposts of these all around the world, and the concept is that you can ask for anything and give away anything you want, so it can be a great source of gently used furniture and household goods especially. And it's not only altruistic but also sustainable — it's more environmentally friendly to give things away than throw them away.</li><li>Seek out cheaper alternatives. If you haven't changed the plan or provider for your electric utility, cell phone service or insurance in a long time, it can be worth researching whether there are less expensive options you can switch to. A number of websites can do the rate comparisons for you, but you might also want to call your cable provider, for example, to ask if they can come down on the price.</li><li>Optimize your credit card benefits. That is, don't forget to use the rewards you earn. It's widely known that many credit cards offer points when you shop in certain categories, and in addition, says Bodge, "credit card carriers often have exclusive arrangements with select retailers," which means you can save more by shopping there with that card. If you're going to really get the most out of your card or cards, it's important to pay attention to notifications from your card provider and regularly check the site. Rewards change periodically, he says, "and card issuers will sometimes raise their rewards for a limited time period."</li></ul><h2>Level-up your income</h2>The best way to enhance your earnings is to ask for a raise, of course. But if that isn't feasible in your current financial state, you can still consider other lucrative options like taking on a part-time side gig, holding a yard sale, selling clothing or furniture through online consignment shops, or doing something a little more out-of-the-box. You could rent out storage space in your home, for example, or if you have a talent other people wish they had, such as being a piano player or an excellent gardener, turn that into a part-time business by teaching students one-on-one or by through workshops at a community center.These options may not be practical for everyone, but in general, looking beyond your current income stream for additional sources can be a fruitful exercise to keep funding your savings and retirement accounts. "Saving money is less about the amount and more about developing the right habits and strategies," Payne says, and while adopting these early gives you a bigger savings runway, "it's never too late to start."You're also hedging your bets in a sense. If inflation rises again, you'll be relieved you've already improved your spending and saving habits. And if it continues to ease up, there really isn't a downside; you'll just have more money in your checking account.

How to Spend and Save Smarter in Any Economic Climate

It can be challenging to fill your cart with fresh, healthy foods without draining your budget, especially with food costs on the rise. (According to the Consumer Price Index, food prices in December 2023 increased 2.7% from the same period the previous year.) &nbsp;&nbsp;
That&rsquo;s why we asked experts from the food world to share their top tips. From pickling and freezing to getting to know your local butcher, these ideas will help you shop smarter without skimping on quality.  &nbsp;
<h2>Shop your pantry first&nbsp;</h2>
Keeping basic ingredients on hand can help you save time and money, notes chef, restaurateur and cookbook author Michael Mina. If you check what&rsquo;s in your pantry before a grocery store run, you might find you&rsquo;ve got enough pasta for dinner or canned tuna for tomorrow&rsquo;s lunch without having to buy more. &ldquo;Having a well-stocked pantry with a nice selection of spices, nuts, legumes, grains and beans along with oils and vinegars, is the best way to get the most from your shopping and keep things interesting,&rdquo; Mina says. You can also stretch what you have &mdash; spices like paprika and cumin work just as well in enchiladas as they would in a curry dish or a chicken tagine, for example.
<h2>Befriend your butcher&nbsp;&nbsp;</h2>
If you get to know the people who head up different sections of your grocery store &mdash; the deli, bakery, produce, meat and seafood departments &ndash; they might tip you off to the best buys. &nbsp;
Often, &ldquo;they&rsquo;ll direct you to the best deals and freshest food,&rdquo; says Andrea Nguyen, author of several cookbooks, who reaps rewards like these regularly. &ldquo;The butcher will save me the steak that&rsquo;s on sale, and the fishmonger will cut me a center-cut filet when I ask so I don't have to buy the whole thing,&rdquo; she says. In the produce section, she adds, &ldquo;they&rsquo;ll even cut and sell you half a papaya or watermelon.&rdquo; Purchasing a portion you'll actually use is easier on your wallet and reduces waste. 
<h2>Freeze, pickle or ferment &nbsp;</h2>
When you buy produce in season, you get it at the most competitive price point and the prime point of ripeness, which means it&rsquo;s also more nutritious and flavorful. Then, if you freeze, pickle or ferment it, you can be eating seasonal produce all year long.&nbsp;&nbsp;
It&rsquo;s one of the best ways to save money and maximize nutrition, says registered dietitian and cookbook author Jill Nussinow. You can blanch and freeze firm vegetables such as carrots and eggplant and pickle or ferment produce with a high water content like okra, onions and green beans.&nbsp;&nbsp;
<h2><img src="https://www.lifeandmoney.citi.com/rcs/v1/media/lifeandmoney/akpublic/storage/retrieveMediaFile/65ca761820ac33393cb62607" alt="overspending-groceries_body_1428274217.jpg/"> Switch to store-branded products&nbsp;</h2>
From dairy to grains, canned vegetables to paper towels, store-branded or generic products are often as good as or better than branded ones,<s>.</s> and the savings can be as much as 70%.&nbsp;
<h2 xml:lang="EN-US">Store food in portions</h2>
Buying in bulk is often more economical, but only if you don&rsquo;t end up wasting the stuff.&nbsp;
That&rsquo;s why Nguyen suggests putting in some prep time. &ldquo;Portion out what you&rsquo;re going to use, then freeze the rest immediately,&rdquo; she says, and consider carving out some time on the weekend to <a href="https://www.lifeandmoney.citi.com/culture/food/meal-prep-ideas-by-jenny-rosenstrach" target="_blank" rel="noopener" data-link-source="tiny">prep</a><a href="https://www.lifeandmoney.citi.com/culture/food/meal-prep-ideas-by-jenny-rosenstrach" target="_blank" rel="noopener" data-link-source="tiny"> a few recipes</a> (even freeze fully prepared meals) to help set you up for the week ahead. &nbsp;
<h2>Pay with a cash back credit card&nbsp;</h2>
A cash back credit card, or a rewards credit card that offers cash back or rewards points on grocery purchases, can help offset your food costs. In addition, many come with sign-up bonuses after you meet qualifying spend requirements within an initial time period as a new cardmember &nbsp;say, the first three months). &nbsp;
-- with additional reporting from Life and Money by Citi editors

These tips from a chef, a cookbook author and a nutritionist will help you save more and eat better. 

Overspending on Groceries? Here's How to Change That.

Ever look at one of your monthly bank statements and wondered: Who made all these purchases &mdash; only to realize it was you? You're not alone. One recent study indicated Americans make three impulse purchases per week.
An unexpected spike in spending from time to time is only one of the reasons many of us have trouble saving our hard-earned money. A 2017 GOBanking Rates survey found that 57% of Americans had fewer than $1,000 in total savings and 39% had no savings at all.
It's not for lack of hard work, but perhaps more a matter of spending and saving smarter. Small splurges seem harmless, but over time, they can impact your overall financial wellness. Here are seven easy steps to put you on the right track to avoiding that spending statement-sticker shock.
<h2>1. Track your spending</h2>
The first critical step to pulling yourself out of the spending cycle is figuring out how much money you need to pay for essentials &mdash;&nbsp;and how much you have left over. &ldquo;I suggest dividing expenses into types: absolutely necessary, necessary but discretionary and totally unnecessary,&rdquo; says Sharon Marchisello, author of&nbsp;Live Cheaply, Be Happy, Grow Wealthy.
Keeping track of where each and every dollar goes will help you separate the essentials from the frills. You&rsquo;ll find it easier to align your spending habits with your monthly budget and savings goals. Digital tools and apps like Clarity Money and You Need to Budget can make tracking your money easier. You&rsquo;ll put less towards your shoe addiction and more towards your first home. &nbsp;
Goal:&nbsp;Discover where your hard-earned cash is going.
<h2>2. Pay yourself first</h2>
Transfer a percentage of your income automatically into a savings account every month. That way, it will be in there before you get the urge to splurge, and you&rsquo;ll be one step closer to your goal with every paycheck. Your savings will build quickly and you&rsquo;ll be saying &ldquo;Aloha&rdquo; to Hawaii sooner than you thought. You can also set milestones, such as saving a certain amount by a certain date. Small changes in behavior can lead to longer lasting habits.
Goal:&nbsp;Save with minimal effort.
<h2>3. Nip impulse purchases early</h2>
With 24-hour access to alluring online deals, it&rsquo;s harder than ever to resist a sale. But there are some easy tips to avoid going overboard with mindless online spending: Don&rsquo;t elect to save your debit or credit card information on your computer or with online retailers. While you take time to dig out your card, pause and ask yourself, &ldquo;Do I really need this?&rdquo; This quick mental check-in will give you the opportunity to reevaluate the spend.
Timesheet spending is an old &mdash; but valuable &mdash; trick. Before you purchase those trendy headphones, calculate how many hours you&rsquo;d have to work to pay for them. A full week of work might be enough for you to empty that cart.
Goal:&nbsp;Be mindful of your spending urges.
<blockquote>
Before you purchase those trendy headphones, calculate how many hours you&rsquo;d have to work to pay for them.
</blockquote>
<h2>4. Consider personal financial products with incentives</h2>
Are you passionate about traveling? Do you have a home renovation project in mind?
Reach those goals with the help of credit card programs that offer the kinds of rewards (points, miles, access to exclusive member perks) that enrich your life. Whether it&rsquo;s earning a flight with travel rewards or collecting points to get that kitchen appliance you&rsquo;ve had your eye on, leveraging instruments like a rewards card may bring you closer to your dreams without sacrificing your savings.
Goal:&nbsp;Collect on points and rewards.
<h2>5. Schedule regular financial check-ins</h2>
Just like making a regular visit to the dentist, your finances also need that same attention to care. Consulting a financial advisor on a consistent basis will help you set clear financial goals and keep you on a path towards the life you&rsquo;ve always wanted.
Kara Stevens, author and founder of the website Frugal Feminista, recommends that financial check-ins should also include, &ldquo;Digging deep into the 'why&rsquo; of each purchase, so you can adjust your saving, investing, philanthropy and spending percentages throughout various legs of your financial journey.&rdquo;
Also, once you&rsquo;ve defined those goals, share them with select friends and family who can help hold you to &mdash; and better realize &mdash; them. Stevens adds, &ldquo;This includes communicating these shifts with your partner and children so there&rsquo;s transparency and shared goals.&rdquo;
Goal:&nbsp;Check your financial health.
<blockquote>
Just like making a regular visit to the dentist, your finances also need that same attention to care.
</blockquote>
<h2>6. Invest in yourself and your community</h2>
Financial health also means investing in your personal well-being and that of your community, too. &ldquo;Financial health and wellness also includes financial self-awareness and really knowing your values and aligning your spending to those purchases or experiences so they are more meaningful,&rdquo; Stevens says.
Whether it&rsquo;s attending a weekly yoga class to benefit your long-term health, or making a charitable donation to a cause you&rsquo;re passionate about, you&rsquo;ll be reaping rewards long past the swipe of your card.
Goal:&nbsp;Sometimes you have to give to receive.
<blockquote>
Avoid impulse buys by building a reward system into your budget.
</blockquote>
<h2>7. Reward yourself &ndash; if you&rsquo;ve earned it</h2>
&ldquo;People rationalize [their spending] by saying, &lsquo;I work hard, I deserve this,&rsquo; even when they can&rsquo;t afford it,&rdquo; says Mary Beth Storjohann, certified financial planner, founder of Workable Wealth and author of&nbsp;Work Your Wealth: 9 Steps to Making Smarter Choices with Your Money.&nbsp;&ldquo;But that only continues the cycle.&rdquo;
The problem escalates when those &ldquo;rewards&rdquo; extend to bigger-ticket items, such as the latest designer bag or rare vintage sneakers, that can plunge you further into debt. Plan for well-earned rewards and avoid impulse buys by building a reward system into your budget. Create savings milestones and timelines for when you want to reward yourself.
How do you know when to treat yourself? When you&rsquo;ve demonstrated financially responsible behavior. And remember: don&rsquo;t spend more than what you&rsquo;ve set aside. It&rsquo;ll make your &ldquo;treat&rdquo; that much more worth the wait.
Goal:&nbsp;Be flexible, but responsible, with your budget.
You&rsquo;ll quickly see how the small financial moves you make every day can bring you closer to the bigger goals that matter most.

7 Goals to Set for Smarter Saving

If you've ever tried to finally get organized, or to become more of a morning person, you know the first step is figuring out why you avoid putting papers away or getting to bed at a decent hour. Changing spending habits is similar — it helps to understand why they started in the first place.Their origin can vary, according to Sarah Newcomb, a behavioral scientist and author of "Loaded: Money, Psychology, and How to get Ahead Without Leaving Your Values Behind." "Some things related to money management are part of our personality," she says. "Others are inherited or absorbed from our surroundings as we grow up — and the same circumstances can produce very different results, depending on the person."Which is to say, each person's perspective on money has been shaped by a unique mix of factors including family attitudes, peer influence, individual experiences, historical forces and our own always-evolving approach to decision making. If you want to improve your spending habits, it's useful to think about the influences guiding your financial decisions, Newcomb suggests."The why is often just as important as the what."Each of us can identify with a particular spending profile, she believes, and once you determine what yours is, you're better equipped to improve your money habits. Read on to find the one that suits you best — and the advice that fits your financial personality.<img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/SELFLESS SPENDER-Cropped shot of handsome man hugging his beautiful girlfriend small._0.jpg" alt="man with beard being kissed on cheek" class="right_image" /><h3>Selfless spender</h3>Defined by: A tendency to spend generously on others.What it means for your money: Spreading the financial love is noble, but it may leave you stretched thin when it comes to your savings.If you're a selfless spender, try to: give more time and less money. If being generous is your goal, consider helping your friends and family by babysitting for free or running errands instead. Give yourself spending limits for gifts. (And nobody has to know something was on sale; the thought, not the price tag, is what counts.)<h3>Status spender</h3>Defined by: Spending driven by a desire to keep up with the latest trends.What it means for your money: The focus on right now can potentially leave you unprepared for emergencies or longer-term goals such as retirement. If you're a status spender, try to: institute a 48-hour rule before you buy. Delaying gratification gives you a cooling-off period to ensure this isn't an impulsive purchase you don't actually need. Take inventory as well. Look around at the objects in your home, paying special attention to pricey or status-driven purchases, and ask yourself whether you still use each. Recognizing the amount you've accumulated may help you curb the tendency in the future.<h3>Spontaneous spender</h3>Defined by: Buying smaller items you don't necessarily need, on impulse.What it means for your money: Small purchases can add up to one big shortfall in your savings plan.If you're a spontaneous spender, try to: Keep a financial diary. Each evening (or as regularly as you can), write down everything you bought that day; it's a simple act of accountability that can make you more mindful when shopping.<img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/spending-profile_body-2_1282653107 (1).jpg" alt="A woman gazes at items in a shop window." class="right_image" /><h3>Free spirit spender</h3>Defined by: A hands-off approach to money management (i.e. no budgeting or number-crunching).What it means for your money: It's tough to save when it's unclear how much money is coming in and going out each month.If you're a free spirit, try to: do one thing — big or small — to improve your finances each week. Create a budget, shop around for a better deal on your car insurance, pay an extra $10 to your credit card debt or round up your loose change and put it into savings. And consider letting an app do the saving for you. Some digital tools will link your checking account to enable no-fuss automatic savings deposits; this may help give you freedom to be a guilt-free spirit spender with some "fun" money left over.<h3>Planned spender</h3>Defined by: A watertight budget, with savings included.What it means for your money: You're saving regularly but may not be taking time out to enjoy the benefits of your efforts.If you're a planned spender, try to: Add a line item to your budget for fun. Give yourself some money every week or month to spend on whatever you want. (If you don't ever feel like you enjoy your money, you may sour on the idea of saving.) Make sure you're reserving funds for wants, and not only needs, too — think annual vacation or new electronics, and not just emergencies and retirement.