Good savers take free money
Does your employer give you a discount on your health insurance for getting an annual check-up? Does your company have employee stock options or offer to match your retirement savings? Do you have flight miles or hotel points accrued that you’re not using? Many people leave this so-called ‘free money’ on the table, Woroch says. It may take a little extra effort to fill out the paperwork, but it’s worth the time.
Good savers have three to six months of expenses saved
Many people live pay to pay, which means millions of people are just one bad car accident or layoff away from financial ruin. It may sound obvious, but good savers save. How much savings you need depends entirely on your lifestyle, but Garrett and Stanzak recommend having enough money to cover at least three to six months of basic expenses like mortgage, insurance, utilities and food.
Good savers are honest with themselves
None of us are getting any younger. Yet so many people live in denial of this fact, Stanzak says. The truth is that each of us has risk factors that could affect financial security. Good savers are honest about their particular risks – advancing age, tenuous job security, chronic health problems, family issues, – and plan their savings to account for them.