Good savers start now
Good savers start early, say Janet Stanzak and Kristin Garrett, certified financial planners who started their firm Financial Empowerment as a way to help people kick bad money habits and develop better ones. Many good money savers were taught as children to sock away for a rainy day, but even those who weren’t have learned to jump on an opportunity. “As soon as they see they have an option, like a retirement savings plan through work, they take it,” Garrett says. “Good savers don’t procrastinate financial decisions.” Here are some more personal finance tips you probably weren’t taught (but need to know).
Good savers have a retirement account
It’s not new advice, but there’s a reason every financial adviser repeats it: Because this is your future we’re talking about. A good rule of thumb is to put ten percent of your paycheck each month straight into a retirement account, Garrett says.
Good savers know the difference between wants and needs
One of the biggest lies we’re sold today, Stanzak says, is that wants are actually needs. “I’ve had so many clients try and tell me that travel, new clothing, and eating out are real needs,” she says. “They’re really not.” Instead, good savers actually write down a list of their basic needs, their wants, and their big wishes. For more money-saving tips, learn the things rich people never waste their money on.