Financial transformations don’t happen overnight, but making a few smart money habits a part of your daily routine can help you reach your savings goals.
While older adults may have much of their retirement savings already stored in their 401(k)s and other savings and investment accounts, other goals may be top of mind, like a luxurious vacation or leaving an inheritance for children. And making small moves everyday can get them one step closer to making those dreams a reality.
10 daily habits to make part of your routine
Following these 10 daily habits can help you stay on track of your finances, keep you from running out of money in retirement and reach your goals.
1. Stay informed
The news keeps you informed of key events that can impact your finances. If there are changes to Social Security or taxes for instance, it’s best to know as early as you can so you can prepare for the future. Read the newspaper or subscribe to a financial newsletter you enjoy. However, you should avoid emotionally reacting to the headlines with your investment portfolio. Selling when other investors are panicking could result in selling when markets are down.
2. Consider the ‘value add’ of purchases
It’s always important to avoid wasteful spending, but it becomes critical when you retire and no longer receive a paycheck. Before making any purchase other than the essentials, like groceries, ask yourself if it will truly add value to your life. If a gym membership will allow you to pursue your fitness goals, it may be worth the money. But a new kitchen appliance that you’ll only use once or twice a year may not bring enough value to justify the price tag. Taking an extra pause before swiping your card can help reduce impulse spending.
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3. Review the Budget
Regularly monitoring your expenses and staying on top of your budget can help ensure that you make responsible financial decisions. Savvy retirees regularly prune their expenses, especially when it comes to unused subscriptions. You can spend five minutes per day tracking your expenses and recording them in a spreadsheet, or using a budgeting app like YNAB.
4. Delete junk mail
Junk mail often presents various product offers and discounts that tempt people to spend money. Unsubscribing from newsletters and getting rid of junk emails can minimize your spending — and make it easier to keep your inbox organized.
5. Check for fees
Banking fees, like those that come with overdrafting or out-of-network ATM usage, can eat away at your account balances. Regularly reviewing your accounts for any fees draining your funds can help you save more.
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6. Make sure you get your money
You may no longer be looking for a paycheck, but it’s important to check that you get other income you’re expecting, like Social Security. Review your accounts to make sure you’re getting all the money you expect so that you can act quickly if you don’t.
7. Move for 30 minutes
While this may seem like a fitness goal and not a financial one, staying healthy can help bring down the cost of your health care needs. Medical bills can deplete nest eggs quickly. Consider running, biking and walking for cardio, as well as lifting weights for strength training.
8. Drink water and get your nutrients in
The above goes for drinking water and eating healthy foods. Doing so becomes extra important as you age, and can help you avoid expensive health care costs.
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9. Call a friend
It’s not just your physical health that you need to consider. Studies show that older adults are at heightened risk for loneliness and social isolation, and that those issues in turn can lead to health problems such as heart disease, depression and cognitive decline. Try to keep in touch with faraway friends over the phone and nearby ones via social gatherings to keep you mentally healthy.
