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The Financial Habits of Super Savers

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Thursday, October 6, 2022

Amidst all the current financial uncertainty–market volatility, inflation, rising health care costs, and talk of recession —a new study has found that the group referred to as “super-savers” is right on track with their retirement savings plans. The annual Super Savers study from Principal® found more than half (59%) of survey respondents said they plan to save more than $20,000 towards retirement in 2022.

A Super Saver is defined as someone who contributes 15 percent of their income, or at least 90 percent of the allowed contributions, to a 401(K) or similar plan. Contrary to the idea that to be a Super Saver you must be financially successful, the survey found that the annual income ranged from as little as $35,000 to more than $500,000 a year.

Here are some tips from the habits of these Super Savers: 

Make adjustments in your daily lifestyle choices

Review your budget and make cuts where you can. This can boost the amount you can put away each month. It’s a small adjustment to make your own coffee and lunch every day. A fancy coffee can cost as much as $5. A simple sandwich from a fast-food place can cost another $5. That’s more than $1000 a year that could be going into your savings account.

Don’t follow trends

The pressure to Keep Up with the Jones’ can start young. Little Johnny next door has the latest sneakers that cost $100 a pair. You feel you must also have them to be “in.” And this continues into adulthood. Wean yourself off wanting things that are not necessary, just desired.

Drive an older car.

Super Savers drive older cars. That means saving on monthly payments. Keep the car in good repair and it will save you money in the long run. If you save a few hundred dollars on a car payment each month, that’s $3000 a year. Even with service and repair costs, you will still be able to boost your savings significantly.

Pay credit card and other bills on time 

Paying your bills on time is an important aspect of taking control of your financial life. Knowing when your bills are due and making a habit of paying them by the deadline can reduce your stress, save you money, and boost your credit score.

Increase your financial literacy

Handling your money wisely starts with understanding financial concepts and using that knowledge to further your financial goals. You can’t control what you don’t understand. Find reliable sources of financial education and make it a habit to increase your knowledge.

Get advice from a financial professional

Super Savers rely on financial advisors for assistance and strategic advice. “It’s never the wrong time to ask for help and support to achieve your financial goals,” says Michael Norton, Senior Vice President, Investments for David Lerner Associates. “They can advise you on how to adjust your savings plan and increase your retirement investment.”


IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website: www.davidlerner.com

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