You need 80 per cent of your pre-retirement income to maintain your current lifestyle during retirement

Talk to your old man or your grandma and they’ll nag you to the ends of the Earth about preparing for retirement. But while these money-saving tips seem smart on the surface, John Deglow, CFP, AIF, at Unified Trust Company, says the reality is many retirees live well below their means and this figure greatly overestimates the income they’ll actually need once they put in their notice.

As an example, a couple might make $100,000 a year after taxes, but once the kids have flown the coop and the mortgage has been paid off, they actually spend $50,000 annually on expenses. So why would they suddenly need $80,000 to make ends meet when they’re job-less? “A better assumption might be that you would need 80 per cent of your current expenses—not income—during retirement,” he says. Even so, make sure to book a one-on-one with a trusted financial professional who can help you better understand the effects of inflation and accommodate other issues unique to your situation, he adds.

Make a pro/con list of major expenditures

When it comes to signing on a dotted line, you shouldn’t have any doubts, says David Rosen, licensed associate real estate broker. “Often, people advise making a list of pro’s and con’s to decide which home to purchase,” he says. “However, if you feel uneasy about an investment or a savings platform, then you are right. Just don’t do it. That list is there to trick your intuition, but your intuition is keenly aware of what’s likely to be a poor investment.”

You should prepay or make additional payments on a home mortgage

Debt might always have a negative connotation, but Jeffrey Sklar, managing partner of Sklar, Heyman, Hirshfield & Kantor LLP, says pre-paying and making additional mortgage payments aren’t smart money-saving tips. How come? Your cash could be put to better use and make you more money. “Most folks don’t analyze if there is tax benefit to the interest deduction, as well as opportunity cost in taking the funds from a potential investment with a better rate of return,” he explains.

Skip your latte

If your addiction to Starbucks is nearly as committed as your marriage, your friends might raise an eyebrow when you talk about your daily visit. Sure, it’s pricey, but financial expert E. Matthew Buckley says skipping your morning latte fix won’t make a huge difference in your savings picture, though it will impact your level of happiness and concentration. “Life is too short to skip the things you enjoy. This type of money-saving tip is very tactical and amounts to nothing more than running around in front of a steamroller to pick up dimes,” he shares. Instead, talk with a professional who can help you come up with a savings plan that leaves room for your caffeine fix. You should also steal these secrets from the filthy rich.

Save 10 per cent of your income for retirement

We hate to break it to you, but for most, this figure is far too low, according to Deglow. How come? Between modest incomes at first jobs and student loan payments, most people aren’t able to save 10 per cent of their income until they’re further along in their career. And once they reach the point where they’re able to tuck away cash, it could be too late to only set aside 10 per cent. To determine the smartest percentage for your lifestyle, chat with a professional who can map out a detailed plan with money-saving tips to prep you—and your bank account—for your golden years.

Over withhold on taxes from your wages to ensure a tax refund

Depending on your tax bracket and incoming earning, your tax refund in April might feel like the only way you can save money. But this is a dangerous way to save, since it doesn’t directly benefit you in the way the dollars could if you invested them instead, Sklar says. As he explains, “Every taxpayer is better off investing their funds than providing the government an interest-free loan in the form of overpaying their taxes. It’s much better to have the extra money go directly into an investment each pay period.”

You need life insurance equal to seven times your annual salary

There’s a lot wrong with this statement, according to Deglow. First and foremost, he notes, not everyone needs life insurance. “If there isn’t anyone who would become financially compromised should you pass prematurely and you have enough assets to pay off your liabilities, life insurance may not be a necessity,” he explains. However, if you do have a spouse and/or children, you need to crunch the numbers to fully understand how much you’re setting aside. As an example, Deglow explains someone who brings in $100K a year and opts for a $700K life insurance benefit, might be shortchanging their family. “Withdrawing 4 per cent of $700,000 would provide only $28,000 annually for your family. A more aggressive withdrawal rate of 6 per cent provides $42,000, again much less than the family was accustomed to,” he shares. And to make it more complicated, he notes this doesn’t address other liabilities, such as mortgages, credit cards, student loans, and more. His advice?

You really don’t need an estate plan unless you are elderly or particularly wealthy

If the thought of an estate plan hasn’t crossed your mind, consider this your not-so-gentle nudge to do so. While Deglow acknowledges it might not be a super-happy topic to address, the truth is no one know when his or her last day will be, and it’s important to plan for what will happen to your assets. And even if those earnings or ownerships are minimal? It’s still your responsibility. “Regardless of income or wealth, families should plan for guardianship of their children, list beneficiaries, and create other documents addressing Powers of Attorney, naming an Executor, and establishing a living will. Essentially, everyone should leave instructions for what they want to happen, so that those decisions don’t fall on family members who are likely already going through a difficult time,” he says. “If you pass without an estate plan, your state has a default plan for you, which may or may not follow your wishes.”

Be a bad tipper

Less practical and more karmic, Rosen says being a Grinch with tipping isn’t a way to get ahead on your savings goals. “The opportunity costs of being known as ‘cheap’ as opposed to ‘generous’ are great! However, the amount of money you save by skimming a few bucks here and there are not life-changing,” he shares.

Prepay your taxes

Much like your mortgage, if you use your extra cash to prepay your taxes, Rosen says there are better uses for the extra dollars. While some do this in an effort to avoid paying them late—which carries a steep penalty—he notes a better money-saving tip is to place the funds in a low-risk cash flow investment. “You will come out ahead, and it’s probably a better investment. The government is going to stay in business with you paying on time, there is no benefit to you to pay them in advance,” he explains.

Believe it or not, your appliances can do more than their intended purposes. Check out the surprising ways you can use your big and small appliances around the house.

Making the Most of Your Appliances

If you think of your dishwasher, microwave, and coffee maker as one-trick ponies, you may be surprised to learn that they’re actually multitaskers. In fact, most appliances in your home can do double—if not triple—duty. Click through to discover some unexpected ways you can put your household appliances to use.

Defrost Food in the Washer

It may sound counterintuitive, but placing frozen foods in your washing machine and running it on the cold delicate cycle with a low water level may actually use less water and work faster than defrosting in the sink. Seal food items in a ziplock bag, and leave the lid of the washing machine open to prevent the spin cycle from engaging.

Steam Fish

Sure, your dishwasher gets your dinner plates clean, but did you know that it can also cook the food that goes on them? Just place some salmon on a piece of foil, squeeze some lemon over it, add a dash of salt and pepper, seal it up, and place the packet on the upper rack of your dishwasher. The slow, steamy heat of a wash cycle will poach it perfectly. Leave the detergent out, though, or you’ll have soapy salmon!

Soften Up Honey

Old honey has a tendency to crystallize, which makes it virtually impossible to drizzle or spread. Before you ditch your old honey for a new bottle, try zapping it in the microwave. First, remove the lid from the jar and place the jar in the microwave. (If the honey isn’t in a microwavable container, transfer it into a microwave-safe dish.) Heat on medium power for 30 seconds, and stir. Repeat at 30-second intervals, stirring each time, until the honey is soft and liquid again.

Remove Wax with a Blow Dryer

If you’ve spilled wax on furniture, scrape away as much as you can without damaging the finish, then go get your blow dryer. Place a length of paper towel over the remaining wax, then blow over it with high heat from the dryer. The towel will absorb the wax, leaving you with a clean surface. The same trick works for crayon marks on walls.

Speed Up Cleanup

On top of the daily wear and tear lunch boxes experience, they’re also subject to spills and leaks that leave behind sticky, smelly messes. Rather than having to deal with the gunk yourself, put lunch boxes in the washing machine on a cold-water cycle with a load of towels, and they’ll come out fresh and ready for school. 

Crush It in the Grinder

Save yourself the trouble of pulling out the food processor when you just need to grind up a small quantity of food. Instead, use your coffee grinder to process nuts, graham crackers, pieces of bread, or other ingredients into a fine powder.

Spice Up Your Life

Use your slow cooker to create a liquid potpourri to fill a room with pleasant scents. Place your favorite spices and fruits into your slow cooker, cover them slightly with water, and set the appliance on low. Leave the lid off and enjoy the simmering fragrances. 

Deep Clean Your Mattress

Sure, you clean your sheets, but when was the last time you cleaned your mattress? Don’t keep putting fresh sheets on top of a mattress covered with dust and allergens. The next time you change sheets, run the brush or upholstery attachment of your vacuum over the top and sides of the mattress, paying special attention to crevices, seams, and other detritus-collecting spots. While you’re at it, vacuum any pillows that can’t safely go in the washer and dryer.

Iron a Square Meal

It may not be the pros’ go-to kitchen tool, but it works in a pinch. You can use your iron to make quesadillas, grilled cheese, and other toasted sandwiches. Wrap the sandwich in aluminum foil and press down for about 30 seconds. Carefully unwrap to check if it’s warm and if the filling has melted. If it’s not yet to your taste, wrap the sandwich back up and press down a few more times with the iron.

Rinse Off Garden Grime

Garden tools have it rough: They not only end up caked in dirt, but they also get exposed to chemicals and diseases. You can give some of your garden tools a more thorough cleaning by running them through the dishwasher. Place tools on the top rack along with small plastic plant pots, and put the bigger pots, rubber boots, and other tall accessories and supplies on the bottom.

Roast Beans in the Popcorn Popper

Pour raw coffee beans up to the max fill line of your popcorn maker, then turn on the machine. Place a bowl under the spout to catch the chaff. The beans will pop just like popcorn, and when they stop your coffee will be roasted! Experiment with different cook times to find the roast level that’s best for you.

Make Them Cold and Clean

Throwing your jeans in the washer and dryer too frequently causes them to fade and stretch. To get your denim clean without losing its shape, try putting it in the freezer, in a sealable bag. Exposure to the cold kills bacteria and removes odors while keeping the denim fresh and crisp.

Produce Fast Flavor

Speed through the process of drying herbs by using the microwave. Pat fresh herbs dry, making sure all water has been removed. Next, pick the leaves off and place them between paper towels. Put the herbs and towels on a microwave-safe plate, and heat for about a minute. Take the plate out to check if the herbs are fully dried. If not, continue to heat them in brief, 20-second spurts.

Freeze Gum Out

Stepped in gum? Rather than trying to scrape off the sticky mess, put the shoe in a plastic bag and stash it in the fridge for a few hours. When you take it out, the gum should come right off. 

Give Home Decor a Quick Rinse

Rather than having to go around the entire house, dusting and wiping down every last piece of home decor, send washable items like glass lampshades, cabinet hardware, and even throw pillows through a cycle to get rid of the dust, grime, and germs.

Brew Some Good Eats

You’ve probably never thought about it before, but your coffee maker actually has three cooking modules: the burner, which can be used as a grill; the basket, which can be used as a steamer; and the pot, which can cook anything from rice to salmon. 

“Namaslay” Sweat Away

Notice a stinky smell while planking on your yoga mat? Think about the last time you really cleaned it. While a quick wipe down between workouts is fine, every once in a while you should give your mat a thorough cleaning to rid it of sweat and bacteria. So, toss in your yoga mat the next time you run a load of towels or sheets. Just make sure to take it out before the spin cycle and let it air-dry.

Ammonia
Give the alkaline-loving flowering plants and vegetables in your garden — such as clematis, lilac, hydrangea, and cucumbers — an occasional special treat with a shower of 1/4 cup ammonia diluted in 1 gallon (3.7 liters) water. They’ll especially appreciate the boost in nitrogen.

Ashes
Wood ashes have a high alkaline content and trace amounts of calcium and potassium, which encourage blooms. If your soil tends to be acidic, sprinkle the ashes in spring around alkaline-loving plants such as clematis, hydrangea, lilac, and roses (but avoid acid-lovers like rhododendrons, blueberries, and azaleas). Avoid using ashes from easy-to-ignite, pre-formed logs, which may contain chemicals harmful to plants. And be sparing when adding ashes to your compost pile; they can counteract the benefits of manure and other high-nitrogen materials.

Baking Soda
Give your flowering, alkaline-loving plants, such as clematis, delphiniums, and dianthus, an occasional shower in a mild solution of 1 tablespoon baking soda in 2 quarts (2 liters) water. They’ll show their appreciation with fuller, healthier blooms.

Bananas
Banana peels, like the fruit itself, are rich in potassium — an important nutrient for both you and your garden. Dry out banana peels on screens during the winter months. In early spring, grind them up in a food processor or blender and use it as a mulch to give new plants and seedlings a healthy start. Many cultivars of roses and other plants, like staghorn ferns, also benefit from the nutrients found in banana peels; simply cut up some peels and use them as plant food around your established plants.

Castor Oil
Give your sickly ferns a tonic made by mixing 1 tablespoon castor oil and 1 tablespoon baby shampoo with 4 cups lukewarm water. Give the fern about 3 tablespoons of the tonic, then follow with plain water. Your plants should be perky by the time you use up your supply of tonic.

Club Soda
Use club soda to water your indoor and outdoor plants. The minerals in the soda water help green plants grow. For maximum benefit, try this tip about once a week.

Coffee Grounds
Don’t throw out those old coffee grounds. They’re full of nutrients that your acidic-loving plants crave. Save them to fertilize rosebushes, azaleas, rhododendrons, evergreens, and camellias. It’s better to use grounds from a drip coffeemaker than the boiled grounds from a percolator. The drip grounds are richer in nitrogen.

Epsom Salt
Want those Big Boys to be big? Add Epsom salt as a foolproof fertilizer. Every week, for every foot of height of your tomato plant, add one tablespoon. Your tomatoes will be the envy of the neighbor-hood. Epsom salt is also a good fertilizer for houseplants, roses and other flowers, and trees.

Potatoes
A raw potato can give a fledgling geranium all the nutrients it could desire. Carve a small hole in a potato. Slip a geranium stem into the hole. Plant the whole thing, potato and all.

Saltshakers
If you use dry fertilizer, try putting it in a saltshaker to use when fertilizing seedlings. It gives you lots of application control so you can prevent fertilizer burn on your tender babies.

Tea

• Sprinkle new or used tea leaves (loose or in tea bags) around your rosebushes and cover with mulch to give them a midsummer boost. When you water the plants, the nutrients from the tea will be released into the soil, spurring growth. Roses love the tannic acid that occurs naturally in tea.
• Schedule an occasional teatime for your ferns and other acid-loving houseplants. Substitute brewed tea when watering the plants. Or work wet tea leaves into the soil around the plants to give them a lush, luxuriant look