What The Best Money Savers Do That You Probably Don’t

Generally speaking, Americans are not famous for their habit of saving money. For proof, look no further than the fact that their personal savings rate was just 7 percent in 2018. However, it is important to note that different groups of Americans can have very different habits on this particular matter, as shown by the existence of people who have been labelled “Super-Savers.”

Essentially, Super-Savers are the Americans who save more than 20 percent of their annual income. On average, a Super-Saver will save something along the lines of 29 percent of their income, which is close to five times the average American, who will save something along the lines of 6 percent of their income. Unsurprisingly, “Super Savers” tend to have the mindset that they are more willing to make sacrifices in the present time in exchange for reaping increased benefits in the future, whether that means more savings, earlier retirement, or a smoother path to financial independence.

What Are Super-Savers Doing That Is So Different From Other Americans?

There is no magical secret for how Super-Savers are able to save so much compared to the average American. Simply put, said individuals are willing to spend less of their money so that they can put their increased savings into their investments. Moreover, Super-Savers are notable in that they will start investing their money at a much younger age than their fellow Americans, which is absolutely critical because an earlier start will mean much more time for compounding returns to work their magic.

With that said, it can still be useful for interested individuals to consider some examples of how Super-Savers differ from their fellow Americans. For example, it is interesting to note that said individuals’ penchant for saving money extends to everything instead of being limited to certain categories. However, there are some categories that show bigger differences between the two groups of people, with an excellent example being how Super-Savers spend about 14 percent of their income on housing while average Americans spent about 23 percent of their income on the same. Likewise, there is a significant difference when it comes to household expenses, which are 16 percent and 12 percent for the two groups respectively.

Moving on, more Super-Savers do their best to stay away from high-interest debt. However, it is clear that they aren’t necessarily risk-averse, just that they want to make sure that they get good results from the risk that they are willing to take on, as shown by the fact that 58 percent of them invest in the stock market compared to just 34 percent of their fellow Americans. Likewise, 55 percent of Super-Savers will do their best to max out their retirement savings contributions versus just 30 percent of other Americans, which is perhaps unsurprising when one of the main reasons that said individuals live this way is for the sake of retiring sooner with as much security as possible.

How Can You Become a Super-Saver?

As mentioned earlier, there is no magical method by which people can become Super-Savers. Instead, the necessary methods tend to be well-known to most people, though putting them to use tends to be much easier said than done. Generally speaking, interested individuals will want to set some kind of financial goal for them to fulfill for the sake of their future plans. Said financial goal needs to be concrete in the sense that it needs numbers. For example, “increasing savings to 20 percent” is fine, but something as nebulous as “increasing savings” is a bad idea because it makes it difficult for interested individuals to hold themselves accountable.

Once people have a financial goal in mind, they can go about drawing a budget for the sake of understanding how their money is being spent before making changes to reach their desired outcome step by step. For most people, it is recommended that they make changes on a gradual basis so that each successful step can serve as motivation for the next. In contrast, someone who decides to make all of the necessary changes right away might secure impressive results in the short run, but they increase their chances of giving up because it is too difficult, thus setting themselves back in the process. Ultimately, what interested individuals want to do is to accustom themselves to savings because the force of habit can be a very powerful tool when used in the right manner.

Treat Yourself to a Great Retirement

About half of the millennials I meet don’t participate at all in their employer-sponsored retirement plans. Maybe they are not contributing to these plans because they don’t realize how important early and regular retirement savings is to their long-term financial health. Millennials are a generation of instant gratification, so it’s difficult for them to see down the road to retirement that is 30 or 40 years away. In the age of Instagram, millennials are “doing it for the gram” and may be spending money on trips, experiences and outfits that will get them the most likes. Search the hashtags #travelgram #ootd and #instafashion and you’ll find examples of what younger people are spending their money on now. But the future is important too. You won’t get many “likes” on your retirement if you can’t afford it. And guess what? Retirement savings won’t just magically appear; it takes years of dedication to saving.

A recent report said millennials are willing to shell out $5,000 for vacations, more than any other generation. This can be a huge hurdle for millennials saving for retirement. The more money that’s being put toward something now, the less money you’ll have for retirement later. I understand working hard and wanting to occasionally treat yourself. You’ve put in long hours at the office and got that raise, so now you think you deserve that new pair of designer shoes or that trip to Italy. Yet you also deserve to have a great retirement. Why not treat yourself to that?

Think of retirement as an achievement. You work your entire life and, by saving for the future, you’ll then have the ability to not work and instead do whatever makes you happy, full time. So how do you treat yourself to retirement? Practice these four tips:

Start saving now

A general rule of thumb is to save 10 percent of your income. Some of that may go into a savings account, while some goes toward retirement. But every person’s circumstance is different so I say start by saving whatever you can, even if that’s just $25 a week. That $25 is better than nothing, and $25 a week is about $1,200 a year. That’s a great start! Eventually you’ll be able to contribute more than that. Few young people have thousands of dollars to throw into an account, but it’s all about building wealth. This takes time but if you start now, you’ll only increase your chances of success and you’ll also develop the good habit of saving. Also, by starting to save early, you let the power of compound interest to work in your favor. Yes it takes years, even decades, but the sooner you start, the more money you’ll have to celebrate with in retirement.

Contribute to your employer-sponsored retirement plan

You should contribute at least up to what the employer will match. If your employer matches, this is free money! Some people are afraid to do this because they don’t want to have a smaller paycheck. Many people have told me they can’t afford to contribute to a 401(k) or IRA but I always tell them that they can. The money you contribute to these plans is taken out of your paycheck pre-tax. Let me break this down for you, $60 from your paycheck to an employer sponsored retirement plan will be the full $60, not the $40 or so that it would be in your paycheck after tax. You get more bang for your buck by investing your money directly into a 401(k) or IRA pre-tax. And if you really look at the numbers, you probably won’t notice just $60 per paycheck being contributed. The money for your retirement account is taken out before you see your paycheck, so you may not even realize the money isn’t there. Basically, you won’t miss it!

Take a hard look at the purchases you’re making

Are you buying something frivolous just because it is something you want right now, or is it something that will benefit you long term? For example, if you’re buying new clothes, make it an investment piece. A great suit or a black dress are classic and timeless. You’ll be able to use these pieces of clothing for years to come. Trendy pieces with bright colors and patterns may go out of style, and you’ll be spending all of that money to only wear it once or twice.

If you want to go on a trip, look for deals

Plan vacations to cheaper destinations. There are plenty of picturesque places that won’t cost you $5,000. In 2019, Costa Rica, Japan and Sweden are on a list of places where your money will go further. While you’re on vacation, there are also several things you can do to keep costs lower. Here’s 50 tips including make your own meals, use public transportation and don’t buy a ton of souvenirs.

Try and remember that retirement means you will no longer have a paycheck. That money that’s now getting deposited in your bank account every month won’t be there any longer. Instead, you will need to live on what you have saved, for at least 20 years. So here’s an easy way to visualize how much you’ll really need: Look at how much money you live on now and multiply that by 20. Do all of your expenses for the year cost $40,000? You’ll need at least $800,000 to cover all of that in retirement, plus more for medical care, and even more when you factor in inflation. Remember the 10% rule I talked about earlier, save at least that but when you run the numbers you may find you need to save more than 10% to reach your goals.

You can still “do it for the gram.” Try hashtags like “#financialfreedom #money and #wealth. Put on that investment piece you bought and pose for a picture of you putting money into a piggy bank. Go ahead, treat yourself to retirement. You deserve it.

6 Proven Tips to Achieve Personal Finance Success

Are you struggling hard year after year to achieve personal finance success?

If your answer is yes then you are not alone because millions of people worldwide are also struggling to achieve this goal. For many people, financial success seems almost impossible to be true, especially if they have struggled quite hard but the results are not satisfactory. Do not let other people’s failure affect your struggle to achieve your financial success. Remember that different people have different processes and achieve results. The following are six proven personal finance tips commonly recommended by reputable financial advisors to help you achieve your financial success.

1. Determine your goals

The definition of success is always different between people. Some people might say that success is when they have become a millionaire and other people might have their own definition of success. Define what kind of financial success that you want to achieve and create the goals that will lead you to your success. Do not forget to create a realistic time frame to achieve all your goals.

2. Commitment and persistence to achieve financial success

Those who have achieved financial success always have a strong commitment and are very persistence. In most cases, personal finance success can take years even decades to achieve so without commitment and persistence you can end up with failure.

 

3. Choose a well paying career and spend less than you earn

Actually, it is a classic advice but many people fail to implement it, especially in this consumerism era. There are many careers out there but not all will carry you to financial freedom. You have to carefully choose a career that will enable you to achieve your financial success. If you choose the right career, always keep in mind to always spend less than you earn. Remember that if you cannot spend less than you earn, it means your financial condition is going nowhere even though you have increased your income. If you need a better paying job, taking the road to a higher education can be a good idea.

4. Create a budget and stick to it

Budgeting is one of the keys to achieve financial successes. With budgeting, you know how much you can spend and how much you have to save. Once you make a budget, stick to it. Do not hesitate to get help from an experienced financial advisor to create a good budget based on your current conditions.

5. Pay off credit card debt

These days, a credit card is an inseparable part of people’s life. Credit cards can be helpful but they can also be dreadful. Credit card debt is one of top reasons people cannot achieve financial success. If you want to achieve success financially, the key is to always pay your credit card debt immediately.

6. Investments

Investments are needed to achieve true financial success but choose your investment instruments carefully. There are many types of investments these days, such as stocks or bonds, gold or silver, real estate, retirement plans and 401k’s, etc, but not all types of investments are good for you.

Conclusion

The journey is the most exciting part in achieving financial success. Taking a money management class is also a good idea to get a good grasp about how to achieve success financially. As long as you have created solid goals, set a realistic time frame, a good budget plan and you stick with your plans then your personal finance success is right around the corner.

10 Tips To Save Money At The Grocery Store

One of the best ways to save lots of money is the follow these 10 exciting tips that anyone can do at the grocery store to ensure the most bang for your buck:

  1. Use coupons – most people complain about coupons but if you understand exactly how to utilize them, you can save a ton of money. People that do this on a regular basis are referred to as super shoppers.
  2. Join a super shopper coupon exchange network – joining a super shopper coupon exchange network in your area means that you can talk with other people and exchange the credit coupons that you like for the ones that they have. This is an additional way to utilize coupons will work together as a team for the best possible buys on the products you love.

  1. Never shop hungry – you should never shop while you’re hungry. We are much more likely to overspend because everything looks so delicious. Always be before going shopping.
  2. Shop at clubs – a great way to save money is the only shop at certain places that offer both purchases and discounts based on being a member. For example, Sam’s Club offers a variety of specialized purchases that are not typically available to everyone.
  3. Make a list – it never ceases to amaze me how many people go shopping with a list. An easy way to stay within budget is to make a list before you go shopping and stick to it.
  4. Plan a menu – planning a menu means that you should only purchase the foods necessary to cook from your menu. If you preplanned the foods that you are going to eat, you also have a list of ingredients that you can buy. It is also helpful that your menu supports other food products that you need to buy. For example, you could buy sliced ham and make a variety of dishes instead of just one, thus maximizing food usage and reducing waste.
  5. Start in the produce section – most people who shop on a regular basis understand the importance of focusing most of their activities in the produce section. This is because you can make a lot of meals that are very affordable if you send them around healthy foods.

  1. Take a calculator – having a calculator with you allows you to quickly add up prices and know exactly how much money you will be spending. This prevents sticker shock when it’s time to check out.
  2. Buy generic versions of your favorite foods – it may come as a surprise to you that a majority of generic brands are actually fully labeled friends that are being sold as generics. Try not to have too much brand loyalty and by the best products when it comes to affordability.
  3. The shop at different locations for the best price – You should never have store loyalty as well. Look around your community and look for the best possible buys and if necessary visit different stores to save as much money as possible.