7 Characteristics of Successful Savers

canstockphoto15497150Do you consider yourself to be a good saver? Very few people often save enough money to maintain a reasonable level of financial security .Many seniors are forced to work well into their retirement years. Adopting great saving habits can make building your savings considerably easier. Making a few small changes may be all you need to have a bright financially abundant future.
Saving money will be a slow process at first and may require many years for you to see impressive results. Nevertheless, your habits dramatically influence your results over time.

You will become a successful saver by adopting these habits:
1. Successful savers pay themselves first. It is natural for our instincts to steer us in unproductive directions. Many people feel compelled to pay all of their bills first before saving their money. It would be nice to avoid the mental burden of bills and other financial obligations. However, there’s hardly anything left at the end of the month to put toward your savings. Make a habit of saving a certain percentage of every dollar that you earn or receive each pay period.

Start out with 2% of your income if that’s all you can afford right now. Make an effort to increase the amount over time. Avoid spending this money at all costs!

2. Automatically save their money. It’s much easier and more convenient to simply have the money from your paycheck direct deposited into your bank account before you have the opportunity to spend it. There are many employers that are willing to split your paycheck and send a portion to a separate account on your behalf. This is one of the easiest ways for you to save money.
3. Learn to control their spending habits. The less money that you spend, the easier it will be for you to save. Review your spending pattern over the last month and determine if all of your money was well spent. Don’t be down on yourself if it wasn’t. Start monitoring your spending each month. Once you get the hang of it, you’ll be amazed about how much money you have accumulated.
It is reasonable for you to expect an annual return of 10% on your long-term investments. For every $100 that you spend today would be worth nearly $750 in 20 years only if it had been invested. Spending $100 when you’re at the age of 20 can cost you nearly $8,850 once you reach 65 years of age.
You should always shop with a grocery list. We’ve all gone to the store for a couple of items and came home with far more than expected. Before you leave home write out a list of what you need and stick to it.

4. Avoid getting into debt. Trying to save while in debt is similar to climbing a mountain and never reaching the top. Consumer debt is an obstacle that will make it difficult to achieve any financial goal. Anytime you’re unable to pay cash for any purchase, you simply can’t afford it.

Avoid accumulating any unnecessary debt unless it’s for an emergency or something that’s very important that needs to be paid for immediately.

5 .Set goals. Saving money is a lot easier if you have a clear picture of the reason. In other words “What is your why?” For example, saving enough money to enjoy a comfortable retirement or sending your child to college can help maintain your focus.

6. Stay on top of their finances. Most savers are aware of how much money is in their accounts and the amount of money they’ve saved and spent each month. They also keep a close watch on all of their income and expenses.

7.Take responsibility for their finances. They always pay their bills on time, stay out of debt and have an emergency fund for the future. They also take responsibility for all aspects of their financial life instead of blaming others.

As you can see, it’s possible to save enough money to secure your future. Creating good saving habits will enhance your results. By making a few minor adjustments, you can watch your savings grow a lot sooner than you’ve imagined. Start creating a budget and savings plan today!

canstockphoto8857234Are you thinking of taking your relationship with your partner to the next level by Moving In Together?  This is indeed a big step to take in your relationship. It is also a big step in regards to sharing your finances.  Moving in together will most likely ease the burden on both of your wallets since the household expenses will be shared by both of you. When you plan in advance on how you will split the costs, things will go smoothly.

 

Running a household can get quite expensive. There are many factors that you should take into consideration.

 

Household Bills

 

Before you move in together, the first thing you need to do is to figure out whose name is going to be on the utility bills. This includes the lights, telephone, cable service, water and gas. If you decide that only one of you is going to be on the lease, then your name or your partner’s is going to be on the utility bills. On the other hand, the utility bills can be in either name if both of your names are on the lease.

Splitting the household costs in half is the usual way for married and unmarried couples alike to handle their finances. When the bills are due each month, you will both share all of the expenses or one of you will pay all of the bills while the other is responsible for the groceries and rental insurance (or homeowners insurance).  Make sure to keep the bills where both of you can gain access so that you can review them in order to keep track of your monthly expenses. Writing  this information on a sheet of paper, using a budgeting software program or app are other great options.

 

Bank Account

 

Some partners choose to open up a joint checking account for the main purpose of paying the bills. If you decide to set up a joint checking account, it is always best to have both of you to check with one another when it comes to handling the finances to prevent overspending. However, opening a joint bank account isn’t for everyone. If you are uncomfortable with this idea, then you should discuss alternative payment plans with your partner. You can always ask your partner for his or her share of the bills whenever the payment is due.

 

The only drawback to this is that the funds may not be readily available. If you don’t have the money on hand to cover your partner’s share, you will run the risk of paying late fees or worse, getting evicted. Another problem you can run into is having someone who has a bad habit not paying his or her portion of the expenses. This is why it’s important for both of you to have a clear understanding beforehand on how the bills will be paid to prevent these things from happening.

 

Allowing Others to Move In

There may be a time when friends and family members may fall on hard times and will ask to live with you for awhile. Before giving someone permission to move into your home, always ask your partner first, even if you think he or she will allow it. Remember this can also put a strain on a relationship.

Before moving into your home, let your new roommate know what expenses that she will be responsible for.  It is always best to have this in writing with both of your signatures.

 

Moving in together is a big step and requires planning when it comes to your finances.  Although, it is not required for you to combine your income with your partner, an adequate payment plan is needed to cover the mortgage/rent and other household expenses. If both of you work together on your finances, this will ensure that you’ll have a healthy and financial free relationship for years to come.

canstockphoto9157930According to the 2014 Financial Literacy Survey, conducted by the Harris Poll, 61% of Americans don’t use a budget. If you’re in this category, you will be glad to discover that creating a budget is a lot easier than you think. It’s also a good way to take more control over your finances.

Creating a budget has many benefits. You can make solid plans to achieve your financial goals and live the best life that you deserve by adopting a budget. A good budget is easy to follow, create sound financial habits and it will also leave a bit of room to have fun instead of feeling deprived of the things you enjoy.

 

Follow these simple steps to begin your journey of creating a budget that best works for you:

 

1. Identify your source of income. You’ll need to know the amount of your total income before you make a decision on how to save and spend your money. Get started by creating a list of all of your income and calculate the total amount. Also include how frequently you’re paid off.

The most common sources of income include the paycheck from your regular job and monthly alimony payments. If you’re making additional income such as a yard sale or a side hustle such as dog walking, make sure this information is also included.

 

2. List and categorize all of the expenses. When you’re creating your budget, make sure to carefully categorize all of your expenses. Consider what portion of your income you’re going to use for various types of expenses.

Many budgeting templates classify expenses in two categories: fixed and variable. Fixed expenses are those that regularly occur for a set amount. Insurance premiums, monthly rent/mortgage costs and car payments are examples of different types of fixed payments. Variable expenses take place at different times or for irregular amounts of money. It is really important for you to estimate the amount and timing of your variable expenses.

If you’re having difficulty setting aside a portion of your money for emergency savings or  achieving other financial goals, categorizing your expenses in terms of wants and needs can be very helpful.

A great way to save more of your money is to consider whether each expense is a true want or need. For instance, do you really need to have cable services, a cell phone or perhaps a pedicure? After you  make a decision on things that you can do without, reduce spending on the items that are only “wants.” This is a bit tougher than it sounds. For example, most of us know that food is a necessity in our everyday lives, but the type of food that we choose to purchase may reflect a want compared to an actual need.

 

3. Leave room in your budget to enjoy a lot of freedom. Staying on top of your budget will help you achieve a balance between your spending and saving habits. It also allows you to do things that you enjoy while taking better control of your finances.

 

4. Boost your income. Just as you are tracking your expenses and setting short and long-term financial goals, look for ways to make some extra money.

 

Getting a second job, using your skills to start a home-based business or selling items around the house that you’re no longer using are excellent ways to increase your income.

 

 5. Use budgeting tools. Writing out a budget can be a tedious or boring task. Using budgeting software programs can make it easier for you to automatically record and track all of your financial transactions.

 

6. Keep a close watch your budget. It’s common to experience changes in your finances over time. For this reason, it’s really important for you to review and adjust your budget on a regular basis.

Whenever you create a budget, keep in mind that the price of food, gas and household bills are constantly fluctuating and there may be changes in your financial goals such as buying a new home or car.
Creating a budget is very important to stay on top of your finances. Use these tips to build a realistic budget that will help you to reach your financial goals while enjoying your the things you love to do guilt free.

 

canstockphoto0826150Many people have fallen into the trap of consumerism in order to compete with their friends, neighbors, coworkers and even complete strangers. They often purchase material things such as luxury vehicles and expensive clothes based on the status symbol. Even though there are many items they can pay for without going into debt, they choose to purchase things that are beyond their means just because of the image that it presents. This behavior is the reason many people go into debt or file for bankruptcy in some cases.

Whenever you are watching television, have you noticed the car commercials promoting their luxury brand vehicles. They create ads that position these vehicles as being the best choice for people that are successful. These ads are working their magic since these vehicles are filling up school parking lots where parents and teachers are impressed of what their peers are driving. This is post-elementary peer pressure at its best.

 

This type of pressure has taken over so much that it often lead many people to get of thousands of dollars in debt. Here are five steps you can take to get rid of the Keeping Up With The Joneses Mindset.

1. Enjoy doing activities that will bring your family true happiness. There are many things that you can do to have fun together that’s inexpensive or you don’t have to spend money at all in some cases. Instead of taking an expensive vacation why not do things locally? You can go to local attractions such as the carnival, petting zoo or the beach. Some of these places give customer discounts on certain days.

2. Don’t Make Impulse Purhases. Think of how much impact the purchase will have on your finances. It doesn’t matter whether you are making minor or major purchases. Create a written plan on the beginning and end date that you would like to clear off your debt. Make your payments bi-weekly or on a monthly basis. Before you go shopping, determine what you will need to buy and always make your purchase in cash. Sticking to this strategy will double or even triple your savings.

3. Be grateful for what you have. Appreciate the things that you have in your life instead of what you don’t have. You may think that you want to drive a new sports car or get a big house. Would it really make you happy to struggle to pay for these things? The only winner in the end are the banks.

4. Take a deeper look at your home and career. Instead of getting yourself into debt by moving into a new house, make improvements to your existing home. This is a lot better than paying for a mortgage and it will also increase its value. If you are thinking about changing careers you can start a side business until you are able to make enough money to quit your day job.

5. Hang out with people who are responsible with their finances. Be very selective when it comes to the people that you bring in your family’s life. If your friends are wreckless with their finances then you should take shopping trips separately. Don’t feel guilty for turning them down whenever you’re asked to go to the mall. It will take time to resist your old habits and keep negative influences at a minimum.

Apprecitiating time with your family, being grateful for the things you have,  improving your existing home and career, staying in control of your spending habits and  having friends around that’s responsible when it comes to their finances are five steps you can take to get rid of the keeping up with the joneses mindset. These things will add real value in your life.

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