Many financial experts think that when it comes to saving 10 is the magic number – 10 percent of your income that is. And while some Americans think that number to be a lot, it’s recently being thought to be not enough. In fact, “the average savings rate really should be 16 to 20 percent of household income… not 10 percent,” says John D. Buerger, Certified Financial Planner. “I believe true wealth is built out of cash flow management (not investment management.)” Having paid close attention to the successes and failures of various saving strategies, Buerger advises us on what works best for his clients.
It won’t surprise you that this finance guru emphasizes trimming the fat first and cutting unnecessary expenses and understanding the value of others. Buerger also highlights many expenses being a feeling of necessity when in actuality a mind shift of what’s a “need” and a “want” would significantly enhance your monthly savings. You’ll be spending less money on things that don’t matter anyway and watching your savings percentage grow by leaps and bounds at the same time. In the end, Buerger notes how much happier his clients are with this significant increase. It’s not just cutting back on cable or a dinner out, it’s a feeling of security, striving for a goal and a huge sense of accomplishment. And it’s what we at SmartyPig encourage each and every day.
We challenge you to cut a few extra expenses this week and donate to a new goal. Will you feel happier, more secure, accomplished? We bet you will!
Wishing you successful saving.
Sarah Foss, SmartyPig’s Media Mad Woman