Whether you’re pinching pennies or downsizing a mortgage, super-savers have one thing in common: they have habits that make saving as automatic as possible.
Here are some ways you can jump-start your savings account:
• Many financial experts advise that you pay yourself first – before you pay anyone else. This means deducting away some portion of your earnings, even if you’re in debt. Having some money growing in an interest-bearing account will make it possible to avoid using credit cards when you actually are out of debt.
• Pay your bills early to help avoid late fees.
• Try to make one extra mortgage payment per year. This can cut years off the life of your loan.
• Take advantage of matching 401K programs offered at work.
• Use pretax dollars to pay for health and child care expenses.
The most important thing about growing savings is getting started. It’s not how much you earn that determines the size of your savings, but how much you actually keep.