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How to save money on your summer holidays: CPA shows six ways

Good savers start early, say Janet Stanzak and Kristin Garrett, certified financial planners who started their firm Financial Empowerment as a way to help people kick bad money habits and develop better ones. Many good money savers were taught as children to sock away for a rainy day but even those who weren’t have learned to jump on an opportunity. “As soon as they see they have an option, like a retirement savings plan through work, they take it,” Garrett says. “Good savers don’t procrastinate financial decisions.”

It’s not new advice but there’s a reason every financial adviser repeats it: Because this is your future we’re talking about. A good rule of thumb is to put 10 percent of your paycheck each month straight into a retirement account, Garrett says.

One of the biggest lies we’re sold today, Stanzak says, is that wants are actually needs. “I’ve had so many clients try and tell me that travel, new clothing, and eating out are real needs,” she says. “They’re really not.” Instead, good savers actually write down a list of their basic needs, their wants, and their big wishes. These frugal living tricks will help you squeeze more out of everyday things.

Autopay makes banking easier: In fact, it makes it too easy for money to flow in and out without your really registering what’s happening, Garrett says. Whether it’s writing out a physical check or filling out the form online, intentionally paying your bills makes your brain note the expenditure. Even better, she adds, good savers write all those down in their budget. Which leads us to…

Yes, a real, honest-to-goodness written chart or spreadsheet that they update and balance regularly is a trademark of good money savers. “The first clue you have that someone has a problem with money is when they can’t provide their monthly cash flow,” Stanzak says. You can’t save if you don’t even know how much money you have to begin with.

Good savers use cash or checks

This isn’t a hard-and-fast rule, Stanzak says, but good savers often tend to use physical types of money. “Research shows you spend 20 percent more when using a credit card because it makes purchasing feel less ‘painful,'” she explains. Handing someone a wad of cash or writing out a check provides enough of a mental speed bump to slow down many impulse buys. Here are 13 sneaky things your credit card company might know about you.

Good savers prioritize saving

It sounds simple but one of the best habits good savers have is simply making saving a priority in their lives, says Andrea Woroch, a consumer-finance expert. “Before spending on anything else, they pay themselves first by putting savings into a retirement account or other self directed savings account,” she says.

 

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