Advertisement

Good savers take free money

Good savers take free money
iStock

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

Good savers have three to six months of expenses saved
Getty Images

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

Good savers are honest with themselves
Getty Images

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.

Good savers do not feel entitled

Good savers do not feel entitled
Getty Images

“Too many people have this attitude of entitlement,” Stanzak says. “They get caught up in ‘I work hard, so I should have this because I earned it’.” But if you can’t afford a nice car or a day at the spa, you shouldn’t buy it, no matter how hard you work or how strongly you feel you deserve it.

Good savers live below their means

Good savers live below their means
Getty Images

Just because you have money to spend doesn’t mean you should spend it. Good savers know that living below their means can help them save more for the future. For instance, just because you can afford a new car doesn’t necessarily mean you should buy one. If your car is in good shape, use it for as long as you can. Another way to live below your means may be to downsize your home.

Think you might be a shopping addict? Here are 7 sure signs that you are.

Good savers know when it’s time to pick up a side gig

Good savers know when it’s time to pick up a side gig
Getty Imaages

Good savers are brutally honest about their income. They know how much they can afford to put away each month, and if they need to make more money to reach their savings goals. If need be, they pick up side gigs to help them meet their goals.

Advertisement

Good savers start small

Good savers start small
Getty Images

It can be easy to read lists of money-saving tips like this and feel completely overwhelmed and throw in the towel. But saving doesn’t have to be a huge change, Woroch says. “If you’re new to saving, start small. It’s easier to adapt to a small change than a complete life overhaul,” she explains. “So begin by automating a small amount each week and when you become accustomed to saving that amount and living off what you have left, increase it by a little. You’ll continue creating a better savings habit each time.”

 

Sign up here to get Reader’s Digest’s favourite stories straight to your inbox!

Source: RD.com

Never miss a deal again - sign up now!

Connect with us: