For many years now, I have saved a good portion of our income each pay period. Right now, I am averaging about 37% and so it made me wonder what percentage it takes to be considered a super saver. Most Americans are not good at saving money. I have read countless articles about people not saving enough for retirement and living paycheck to paycheck. Today, I will examine what makes an individual a super saver and offer some suggestions on how to save more each month.
So, what is a super saver? I define a super saver as someone who saves more than 20% each paycheck. Some of you might actually save a lot more each pay period. I tend to average around 37% each month, which I honestly feel I could increase that a little more. Going forward, I plan on trying to save on average of 40%.
Sadly, you have individuals that rarely save or only put back a small percentage each month. Now, I do understand that some people simply do not make enough money each month to save. As a kid, my family was poor and saving money was not an option. If that is the case, it is important to work hard and find ways to improve your situation. I strongly believe education is the gateway to success.
However, I also know individuals who make plenty of money and still live paycheck to paycheck. I guess that’s alright for some people, but if you are striving for financial independence a person has to save a large percentage back to achieve that. Average simply will not cut it if you are trying to retire early.
What can we do to improve our finances? The first step toward getting your finances under control is creating a budget. Yes, you actually need to type out or write down a budget. Doing it in your head does not count. I personally like Make a Budget – Worksheet. This is an outstanding worksheet from Consumer.gov and it makes tracking your finances so much easier.
So, if you want to become a super saver, it is important to know where your money is going and always look for ways to lower your expenses. Living below your means is essential toward gaining financial independence faster. What percentage of money do you save each month? What advice would you give to novice savers? Your opinions are always welcomed.