How to Save Money As a Super Economy
New research offers some insight into the habits of the “top-secret”, which is determined by their ability to defer 90% of the maximum contribution for their 401 (k) s (or alternatively, at least 15% of their wages). Of course, making a lot of money also helps (yes), but half of the respondents earned less than $ 100,000, and of these, 15% earned $ 35,000 or less. And their shared money habits can be a blueprint for all of us to increase our own savings.
Super savers make payments on time
More often than not, common habits are associated with lending behavior, including making payments on time, avoiding overdrafts from their checking accounts, and using credit cards only when needed. This all maintains a high credit rating, which, as we discussed earlier, has a huge impact on how much money you can save in your life. According to the survey, the most common habits or behaviors related to super preservation are as follows:
- Bills are paid on time: 85%
- Payment by credit card in full: 73%
- Don’t drag your checking account: 70%
- Double-digit percentage of earnings before retirement: 70%
- Equity capital grows every year: 62%.
- Not feeling guilty about accidentally spending money: 61%
- Indifference to Keeping Up with the Joneses: 61%
- Don’t lose sleep over my finances: 56%
- Confident in your financial future: 54%
- Feel like I’m in control of my finances: 53%
- Satisfied with my financial situation: 50%
- Don’t use credit cards when necessary: 49%
- Inclined to save from nature: 47%
- Have a financial plan: 44%
- Spend time studying finance each month: 31%
- Spend time researching investments each month: 29%
- My opinion on finance is asked: 29%
- Have a debt repayment strategy: 27%
- Have a budget that I follow every month: 21%
Other lessons learned from the survey
A Principal Financial Group survey that looked at people between the ages of 19 and 56 who invest at least 90% of their maximum contribution of $ 19,500 (or alternatively, save at least 15% of their wages). also brought up some other ideas.
The greatest impact on saving habits tends to start at home, as superconductors refer to a parent (32%), a family member (9%), a spouse (6%), or watching someone go through financial difficulties (10%) for the reasons they call. besides savings, more than the average person. This far outweighs other factors, such as the influence of financial gurus (4%) or an online article like the one you are reading right now (1%, bummer).
And while 61% of the super thrifty say they use the budget, only 21% follow it every month. This suggests a random DIY financial strategy, as evidenced by the fact that only 34% of respondents use the services of a financial advisor. While super-savers still spend money from time to time, over a third of them consistently save on bigger things like travel, housing (a more modest home), cars (they drive longer on older models).
Good financial habits start with a contingency fund
Another hot topic for all these super-savings is stability: few lost their jobs (5%), while most either increased their savings or increased investment during the pandemic. This suggests that luck is a factor in financial stability for all age groups, which again underlines the need to be prepared for the unexpected.
For this reason, if you are looking to improve your finances, make sure you have a replenished emergency fund. Here are the steps to take to create an emergency fund if you haven’t already .