Do you think you’re a good saver? Most of you, I suspect, will be shaking your heads. Don’t worry, you’re not alone, few of us actually save enough money to maintain a reasonable level of financial security. Remember, saving is a slow process. It’s like working out: you won’t see instant results, but with perseverance, you’ll get there. I believe in you!
Try to adopt these small habits today to ensure a brighter financial future, so rather than working through your golden years, you’ll be spending them getting a golden tan.
1) Savers pay themselves first
Before you pay off those bills or that credit card debt put a little aside into savings first. It can be unproductive to pay off all of your debts at once – for more information on this, check out my blog post entitled “Save Money Vs. Paying Off Your Debt”- (click on link to read).
My tip – Get into the habit of saving a percentage of every dollar you earn or receive. If you can only afford 2%, then start with that but be sure to increase the amount in the future when you can. Try not to spend this money on anything else!
2) Savers save automatically
It’s much easier to set money aside when it’s taken out of your paycheque before you have the opportunity to spend it.
My tip – Most employers are happy to split your paycheque between accounts. Ask them to put a percentage in a savings account and forget about it until you need it.
3) Savers keep their spending in check
This is a simple equation guys. The less you spend, the more you can save. Have a look at whether or not last month’s spending was all worthwhile, and eliminate any unnecessary expenditure.
My tip – Think about it this way: it’s reasonable to expect a 10% annual return on your long-term investments. Which means every $100 spent today could be worth nearly $750 in 20 years. That $100 bottle of champagne you bought to impress your friends when you were 21 might be worth $8,100 at age 65 if you had invested it wisely. Not so impressive now, are we?
4) Savers avoid debt
Consumer debt is an obstacle to achieving financial success. Saving while in debt is like walking up a hill and never quite reaching the top. Remember, if you’re unable to pay in cash, you probably can’t afford it.
My tip – avoid accumulating unnecessary debt unless you’re in an emergency situation and need to pay something off immediately.
5) Savers have goals
Saving is SO much easier when you know what you’re saving for. Aiming for a comfortable retirement or enough money to send your child to college, for example, will keep you focused and disciplined.
6) Savers take regular measurements
Do you know exactly how much money is in each of your accounts? Well, a good saver does. They know how much they spend and how much they earn like the back of their hand, and you should too.
7) Savers are financially responsible
- Savers pay their bills on time,
- They know how much debt they’re carrying and,
- They have an emergency fund for the future.
That’s why you don’t know anyone who is a brilliant saver, but a financial mess otherwise. Take responsibility for all aspects of your financial life, and saving will become second nature.
By adopting these small habits, it’s absolutely possible to save enough money for a happy financial future. The trick is to make minor adjustments, that together will have a major impact on your savings. Remember, our lives are often shaped by our habits, so rather than biting your nails or smoking another cigarette, create habits that support your financial well-being.
Thanks once again for reading. Feel free to hit the share button and share it with someone you love. We could all use a dose of daily reminders to help us in our financial journey. Remember to have fun while you’re at it!