Habit of Saving

Habits 

We all have many choices and options, and most of us set ourselves up as creatures of habit.  Most of us live in routines, getting up at the same time, getting to work about the same time, eating lunch about the same time, working about the same number of hours, getting home about the same time, and going to bed at about the same time. 

Money is all about habit and routine.  We encourage people to set up regular savings goals and pay themselves first.  Most of us begin our careers feeling strapped and struggling to make ends meet.  Scarcity is the state of beginning for most of us. 

As we become more successful, we sometimes get caught in the habit of spending everything, like we always did.  It is important to prioritize saving and accumulation as soon as reasonably possible.   

If your employer offers a retirement plan, it probably offers some sort of matching contribution. Take the extra money.  It’s like getting a free raise, and when you are saving in a 401(k), the money is tax deferred, protected from creditors, and can provide you with a strong start to your financial security.  Solid increases to net worth happen slowly over long periods of time, and the actions for building wealth must happen often. 

Every affluent person I have ever met lives on less than what they make.  Anyone can be well off if they create the savings habit.  Start with an IRA or a retirement plan.  Add an individual account and set up automatic contributions.  Save the money first, and you will create a pattern that will serve you well and allow you to live secure and free once you stop working. 

Once you learn to live below your spending potential, you will develop an asset base.  Once you see your money grow, you will build confidence.  So yes starting is hard, but the sooner you start the habit of saving, the better off you will be in the long-term. 

Contact Family Legacy for help with your savings habits