Finhabits believes that in order to make saving for retirement a habit (affiliate link), there are small actions people can take. Here’s a simple roadmap to get there:
It’s the simple things you don’t usually think of that really make a difference in your wallet. For example, if you visit ATM machine less frequently, you might save a lot of money. Whenever you use an out-of-network device, your bank also automatically bills you. You’re basically giving these institutions free money just to access your own funds. The solution is all in simple planning. Look through your past bank statements and project how much cash you typically withdraw within your regular pay period. Then find your nearest in-network ATM machine and make your withdrawal there. Unplugging as much as you can at home while not in use is also a helpful way to lower your electricity bill.
Establish a realistic budget of how much you can save each month to avoid the frustration that comes with trying to overachieve. When you start to save consistently over time through small changes, the amazing feeling that comes from success will lead you to make bigger strides towards saving even more. There are people who start saving (affiliate link) from $5 and are able to go up to $20, $50, and more a week - eventually. The initial amount doesn’t matter, as long as you just start and are disciplined. To calculate your monthly expenses add your essential expenses such as rent or mortgage, transportation, food, etc. and determine the exact amount you can contribute.
If you switched jobs and had a 401(k)s through your previous employer, roll that money over to a Finhabits IRA (affiliate link). Many people forget that these 401(k)s are in place and once they move to a different job, they leave their money in the past - but it’s their money! Some people actually have several different 401(k)s from different past companies. It’s best to consolidate them all into a single IRA that charges less, belongs to you wherever you go, and has unlimited investment possibilities. Call the human resources department at your old company or contact your service provider directly to have them explain how to make the transfer.
Learn to invest your money. There’s a bit of a stigma around investing - people have the impression that it’s not safe, that it is risky, and can be difficult to learn. Yes, there are risks to investing your money, and learning the ins and outs of it can take some time but there’s a level of unpredictability to most things in life and learning any new trade takes some time too - but if you’re *wink wink* invested enough in investing, the payoff could be huge. Plus, technology has made it super easy to automate the process and lower the risk.
It’s 2018 and almost everyone has a smartphone - use it to achieve your financial goals! Mobile technology helps us to be more efficient with everything. Manage our calendar, our contacts, and even our work. Why not also use technology to improve our finances? Find a service or download an application like Finhabits (affiliate link) that helps you manage your goals. Some options are free (affiliate link) and can help you with the resolutions we speak.