Nobody ever got rich merely by saving money. But it’s a surefire way to help build wealth and security if done right.
Adopt these three habits if you’re struggling through the pandemic’s economic fallout or want to be more mindful of your spending. (grow.com)
Supersavers are people who saved more than 90% of the annual employee contribution limit in their 401(k) during 2019 ($17,100) or contributed more than 15% of their salary. Making that achievement even more impressive: Nearly half of supersavers earn less than $100,000 a year.
The survey, from retirement account provider Principal Financial Group, looked at people between the ages of 20 and 54 who have a retirement plan with the company. Principal found that 97% of the more than 1,700 supersavers surveyed this June feel comfortable managing their finances through this uncertainty, and many are committing even further to their long-term financial goals.
“Supersavers are prepared and feel more secure because they have a cushion of extra ‘just in case’ money and they’ve made small spending sacrifices over the years to prepare for the potential of an uncertain economic climate, just like the one we’re experiencing right now,” says Marguerita Cheng, a certified financial planner and CEO of Blue Ocean Wealth in Gaithersburg, Maryland. She is also a member of the CNBC Advisors Council.
“It’s very much like compounding interest,” says Cheng. Supersavers “use spending behaviors, or habits, to accumulate and grow their wealth for the future.”
Want to know the shared traits of highly successful supersavers?
They are judicious when borrowing. Cheap financing offers may seem enticing, but keep in mind, monthly car payments average $569 for new vehicles and $397 for used ones!
Every month you don’t have an auto payment is another where you will save hundreds or even thousands.
Continue reading at grow.com.