Last month I talked about the importance of managing your cash flow and how it forms the basis of a solid financial foundation – and reduce stress. This month, I want to talk about a few simple savings strategies to give that can give you a boost. I know, nobody wants to think about saving in December, but you will want to think about it in January. Think of this as getting a head start on your New Year’s resolutions.
This article from Fidelity, Secrets of young super savers, has 6 great tips for saving, but don’t get hung up on what other people are saving. If you think about it, 1 in 5 millennials is not that many. It is only 20%. Instead, it is more important to concentrate on what you can save and, more importantly, when you start. Don’t procrastinate. It is better to save 5%, 2%, or even 1% than nothing. It is even better than saving 15% but starting 20 years later!
And give yourself a goal, something to work towards and measure. It doesn’t have to be your total retirement savings either. Make it achievable and measurable. Perhaps saving $150,000 by the time you are 30? Create a goal, make a plan, stick to it, and measure it. Fairly simple, but easier said than done. There are plenty of resources to help and don’t be afraid to ask for help!
Have a great Holiday and New Year!