Mastering the art of saving is an important part of your financial comeup. Knowing how much to save and how to go about saving it can be a tricky task for a lot of people. According to GOBankingRates’ 2019 savings survey, 69 percent of Americans have less than $1,000 stashed away and 45 percent have nothing saved.
The same survey identified what respondents considered as barriers to saving. Obstacles to saving include living paycheck to paycheck, not knowing how to budget, forgetting to save, and others. The great news is, for every challenge there’s an opportunity to pivot and do something different and better.
These 5 habits of savvy savers will help address some of the challenges many of us face when it comes to saving.
Savvy Savers Plan
Planning is an important part of being a good saver. Budgeting is part of planning. You have to know exactly what’s coming in and exactly how you are spending it. When you’re clear on the money flow you can better know what adjustments need to be made, for instance where you should focus on cutting costs. Having a detailed plan also includes setting make adjustments.
Savvy Savers Understand Finances
If you’re thinking, being a financial guru are big shoes to fill, you’re absolutely right! But when it comes to creating economic mobility for yourself, effort goes a long way. You might not become the world’s leading financial mind but that’s okay. Savvy savers know it’s important to understand the basics and when it’s time to seek more knowledge. They definitely understand the financial topics that relate to them and their financial path.
Savvy Savers Pay Themselves
Making sure your savings account sees a piece of the pie is the only way it’ll grow. Making having a high priority by including it in your budget. By making paying yourself (saving) a priority, it adds a level of importance and you’ll find a way to adjust your budget to account for your priorities and goals.
Savvy Savers Use Tools
Using available applications and features can help keep you on track to achieving your financial goals. Use technology for what it was intended, to make life a little easier. Automating bill pay and transfers cuts back on some of the manual work you have to do. It saves money and time.
Savvy Savers Talk About Finances
Being rigid in your perspective about finances can get in the way managing your money and being a savvy saver. People adept at saving don’t clam up when the topic of finances comes up. They might not be the authority on the topic in the room but the subject doesn’t make them flee the scene. Being receptive, flexible and eager to learn from experiences and people around can take you far.
Making a continuous effort can add up to big wins. Because everyone’s situation is different, there’s no perfect science to managing and saving but there are basic practices that’ll help build a solid foundation for you to build financially. The best way to identify what works for you, is to get started right away with incorporating the habits we outlined above.
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