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.

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