4. DO MAKE SOME SPLURGES… BUT KEEP THEM CONTROLLED
Despite the amount of sacrifices that are made, there are still some people with their vices. Out of the survey, there’s only 5 percent of them who withhold from splurging entirely. In most other circumstances, the splurging is minimal with a few big purchases sprinkled about.
About 53 percent of them pay for a subscription-based services (like Netflix, Hulu, etc.), and 46 percent splurge on travelling. In other cases, splurging means getting a coffee on the go, dining out once or twice a week or paying for non-essentials. In some other cases, it’s buying luxury cars.
Every person has their own vice and it’s hard to not be tempted. The important thing to keep in mind is that the frequency of it is justified. It’s okay if you’re dining out once or twice a week. It becomes a problem if you’re doing that 10 or 11 times a week. All the same, buying a luxury car is okay if you can afford it and you’ve had your older car for several years now. It’s not good if you’re replacing your car every single year.
5. BECOME AN AVERAGE INVESTOR
Being able to retire comfortably doesn’t require you to have a Wall Street-level of financial knowledge. Out of the survey, 64 percent of supersavers admit they see themselves as average investors. An average investor is described as someone who has a general understanding of investment concepts. In other words, they know what an index fund is, mutual funds, stocks, bonds, and general concepts of the stock market.
Outside of that, 18 percent admit they are beginner investors with little understanding of investment principles. Lastly is 19 percent that call themselves knowledgeable investors who know their way around investing.
As you can tell, you can get away with little knowledge of investing. If you’re planning on saving up for retirement properly, we’d suggest reading some finance-related articles, personal finance articles like this one, and maybe a few books to help you get a grasp of the investing world.
6. FIND A MOTIVATION TO SAVE
Another key aspect to being able to save for retirement is to be in the right mindset.
If you want to save, you need to be motivated to save. For the supersavers we’ve mentioned, a good portion of them – 61 percent – find their motivation to save by the sheer fact they want a good lifestyle during retirement. Beyond that 51 percent say they save in order to be prepared for the unexpected and 73 percent say having money to save motivates them to save even more.
When building a habit, you need a motivation or else you stop doing it. It’s easy to talk yourself out of something when you’re not motivated to do that. As such, you want to have a good reason for why you’re saving your money up.