Building your nest egg will not happen overnight but a set of positive, consistent habits will surely take you there. Below are 8 to cultivate today and start saving more.
1. They have a retirement fund.
All financial advisors will tell you to start a retirement fund because your future is at stake here. Is there any other better motivation? It is recommended that you save 10% of your monthly paycheck and put it into your retirement fund.
2. They start early.
When children are taught to save, they are likely to keep this habit for life. As adults, savers would prefer to invest their money than buy things. They do not procrastinate on financial decisions, too.
3. They are on top of autopay.
Autopay is convenient. It makes banking easier. However, you should not set it and forget it. Check the transactions at least once a month to make sure the charges are accurate and get a good sense of what is going in and out of your bank account.
4. They have a budget.
This is the trademark of a good money-saver. They write their cashflow, budget it, and make regular updates. In fact, the first sign of a person with a money problem is the inability to provide their monthly cash flow.
5. They prioritize saving.
If you prioritize saving, you will have more savings. Before buying anything else, good savers will pay themselves first by transferring savings into a retirement account or other self-directed savings account.
6. They track even the smallest things.
Little things can add up quickly. It does not matter if it is only a dollar spent or a cup of coffee. You will only track your money if you write down all your expenses without discriminating in size.
7. They look for deals.
Good savers think their purchases through. Before buying anything, they will look for coupons, compare prices, read reviews, and hunt down deals to make the best buying decision.
8. They are honest.
Every person has a unique set of risk factors that could affect their financial security. Good savers are able to be honest about their own risks, be it aging, chronic health problems, job security issues, and so on, and plan their savings to address these risks.