Spending Tips

It will take a lot of discipline to change your spending habits, but you will soon appreciate the benefits of spending and saving money wisely. To sum up, only spend what you can afford. Make monthly contributions to your savings and tax-deferred plans every month.

Tips for Spending Less and Saving More

• Ask yourself if what you are about to purchase is a need or a want. Do you really need 150 channels on your TV? Do you need two mobile phones and a pager?

• Be a smart shopper. Buy winter clothing during off-season sales and only buy items on sale.

• Cancel all but one of your credit cards. And pay that one off each month.

• Cut transportation costs. Consider buying a used car and driving it until it does not work. You can save even more by taking public transportation or carpooling.

• Do not spend money that you do not have. If you can not pay for the purchase in the next couple of months, with a few exceptions, do not charge it! Minimize or eliminate your debt. This is critical to long-term financial success.

• Eat out less often. You save money because you do not have to pay the cook, the waiter, the valet or the owner of the restaurant.

• Make sure that you are adequately insured and not overpaying on your policies.

• Pay yourself first. Make sure that before any other expense is deducted from your paycheck, you contribute to your tax-qualified plan at work or any other tax-deferred savings investment.

• Understand exactly where every dime you spend goes.

Visit the Insurance Planning course for a personalized analysis of your insurance needs.

Securities and investment advisory services are offered by AIG Retirement Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

AIG Retirement is the marketing name for the group of companies comprising AIG Retirement Advisors, Inc.; AIG Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a subsidiary of American International Group, Inc.

This information is general in nature and may be subject to change. Neither The Variable Annuity Life Insurance Company nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.