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This Week In Your Wallet: Special Savings Edition

Happy Tuesday all – and welcome to America Saves Week 2016. This is the time of year the folks from America Saves take the pulse of our progress when it comes to socking money away both for emergencies — and our future goals. And this year, the pulse is, well, tepid. According to the America Saves Week survey, just 28% of Americans (and 23% of women) are saving at least 10% of their income.

That 10% line is crucial if you want to even have a shot of maintaining your standard of living in retirement. Recent research suggests that bumping it up to 15% — simply because we’re living longer — is a good idea.

What seems to help when it comes to achieving your savings goals is having a plan. Yup, writing down what you want, when you want it and how you’ll get from here to there is the secret sauce. According to the research, 84% of those with a savings plan reported spending less than their income and saving the difference, while only 46% of people without a plan reported the same.

This or That: Tax Refund Edition

If you’re looking to get a jump start on your savings — or pad the savings you’ve already amassed — a tax refund can do the trick. According to the IRS, this year refunds are averaging about $3,000. What should you do with yours? Using them to pay down high interest rate credit card debt, or popping them into a retirement account where you qualify for matching dollars, are both good moves. And, if you’re already saving a substantial amount, you can use it on home improvements that will pay off – or to pre-fund next year’s winter vacation.

This morning on TODAY, I played a game of This or That: Tax Refund Edition with Willie Geist and Al Roker that was too much fun. Take a peek to see who won.

Eat Your Way to Savings

In the department of strange-but-true, did you know that you could save yourself roughly $2,200 a year just by eating? According to Forbes, Americans throw away about a quarter of the food, on average, that we buy from the grocery store. Clearing out the clutter — paging Marie Kondo — is also high on the site’s list of “unconventional” ways to save. If that pile of sweaters in your drawer or books on your shelves don’t “spark joy,” Kondo would say they don’t deserve space in your house. Sell them to pad that savings cache we were talking about.

More Money, More Problems?

When my kids were young, with little-kid problems, I vividly remember people saying: “Older kids, bigger problems.” Turns out, that’s true. So is the fact that having more money can bring on more — and bigger — problems, as U.S. News & World Report points out. Example? A windfall. Whether it comes in the form of a lottery win, an inheritance or a nice-sized bonus, windfalls are cause for celebration. All too often, though, overspending follows. For a better balance of fun and responsibility, try putting a third toward taxes, a third toward savings and a third towards your wish list. Even better, sit on the cash for six months before you do anything at all.

Home Is Where the #HARP Is

We’re coming up on the expiration of the HARP — or Home Affordable Refinance Program — developed in the aftermath of the housing crisis to allow underwater mortgage holders to refinance at lower rates. It ends on December 31, 2016. Yet, according to the Federal Housing Finance Agency, over 367,000 U.S. homeowners are still eligible. If you have little or no equity in your residence, it’s worth taking a few minutes to check it out. Potential benefits could be a lower interest rate, shorter loan term or a fixed-rate mortgage in lieu of an adjustable. Another plus? No minimum credit score.

Have a great week,

Jean