Saving for your own retirement is your responsibility. Saving for retirement does require some effort on your part.
Of course if your employer matches your 401k plan contributions it helps ease some of the burden on you; but you are still ultimately responsible for getting yourself financially ready for retirement.
By adjusting some of your financial habits you may be able to find some extra money to put into your investments. So let’s review some changes you may be able to make to your financial habits and help you find some extra money.
Change Your Habits|Find Extra Money For Investments
- Buy on needs, not on wants. Just following that habit alone could save you enough money to fund your 401k for several months.
- Only buy something if it’s on sale.
- Get in the habit of not paying full price for anything, that includes clothes, food, appliances.
- Avoid impulse buys.
- Always make a shopping list before you go shopping and stick to the list. If it’s not on the list it doesn’t go into your shopping cart, period!!
- Clip coupons. That sounds so old-fashioned to some people, but it does save you money.
- If you want to know where you are spending your money you need to track it.
- Budgeting sounds old-fashioned too, it doesn’t sound chic…but it’s the best way to follow your money.
- The only way to find extra money to invest is to know where your money is going and a budget helps you do that.
- Set up your budget with 2 sections; one section lists what you can afford to spend on items such as food, clothing, housing, entertainment. The other section should list how much you actually do spend on those items.
Credit Card Habits:
- Avoid the over use of your credit cards.
- It is so easy to overspend when you use credit cards; the shock comes when you get the statement.
- Get in the habit of not buying something unless you 1) can pay cash for it 2) can pay off the credit card as soon as you receive the credit card statement.
- One of the worst credit card habits to get into is to carry credit card balances.
- By carrying a credit card balance you are just wasting money on fees and interest.
- In the long run you will damage your credit scores by carrying balances on your credit cards.
- Credit scores are one of the best financial tools. A good credit score will get you lower interest rates on rent, mortgages and student loans…so if you have a good credit score, why tinker with your credit score by developing bad credit card habits??!!
If you want to stop working some day, you need to be financially prepared. The way to get financially prepared is by squirreling away money during your working years. Don’t delay, by changing some of your financial habits you can find some extra money for your investments…guaranteed.