Vanguard BrandVoice: 8 Important Questions Successful Savers Ask Regularly

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Fact: A good shower over and over again is one of life’s greatest pleasures. Whether it’s a shiny new pair of shoes, your artsy coffee drink of choice, or the essential tech gadget of the moment, we all deserve to treat ourselves from time to time.

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The occasional splurge probably won’t hurt your long-term savings goals, but if you regularly catch yourself overspending, it can cut into what you can afford for the future. It’s worth checking your finances from time to time to see if it’s appropriate for you to reduce your spending in certain areas. That doesn’t mean giving up on your avocado toast (or whatever your avocado toast equivalent is). It simply means fitting these things into your budget thoughtfully, keeping your long-term goals in mind. These questions can help you identify and celebrate your savings potential—and narrow down areas where there may be room for improvement.

the basics

1) Am I able to comfortably afford the regular expenses like rent or mortgage, bills and food?

If you find yourself stretching each paycheck to the limit to cover regular expenses, it’s worth taking a deeper dive to find ways to reduce your spending in other areas.

2) Am I saving the maximum amount through my company’s 401(k) matching benefit?

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Making the most of your company 401(k) matching is a good way to Boost What You’re Putting Away for Retirement with minimum effort. Make sure you’re contributing enough to your 401(k) to benefit from your company’s full match.

3) Am I setting aside money to fund my bigger goals (like home, car, college)?

It’s Hard to Think About Saving More When You Have Others financial priorities Competition for your attention. But remember that every penny you add to an investment account may grow further than you think — your invested assets can benefit from compounding over time.

4) Do I have an emergency fund that can cover at least 3 months’ living expenses?

An emergency fund is a safety net that can give you confidence and peace of mind, no matter what is happening in the world. If you don’t already have one, we can help you start one,

Excessive

5) Am I autopaying for subscriptions I don’t use?

Maybe money is missing from your account every month for an online game you never play, a magazine you don’t read, or a box-of-the-month club whose boxes are somewhere untouched in your house. are sitting. Doing some subscription housekeeping can free up more of your money to put toward other goals.

6) Do I think about them enough before making a purchase?

Some items seem like a good idea when you order them, but by the time they arrive at your door, you’ve already run into them. One of our favorite tips: Put purchases in an online cart for a few days so you can see exactly what you’re buying.

7) Do I spend money with FOMO—the fear of missing out on the new trend or gadget that everyone is talking about?

Sometimes when we read about those people who go camping for days to get the latest phone or smart watch, it can create the illusion that we should keep it in our life because it is very nice and unique. Is. Take the time to make sure you’re making a big purchase for the right reasons, not just to keep up with the Jonas.

8) Does my unplanned purchase fit into my budget?

It’s always a good idea to make room in your budget for some spontaneous spending every month. Life wouldn’t be so much fun if you had to say no to Double-Mocha Extra-Whip Iced Coffee every now and then. As long as you’re taking the time to thoughtfully weigh your entertainment expenses against your long-term goalsWell, you’re looking for your financial well-being—and that could make a whole different world!

Taking control of your spending and savings can help you achieve long-term success. Whatever your savings goals, we can help you plan for them.

What are your investment goals?

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