9. Setting and Forgetting About Your Savings
It’s great that you’re contributing to your retirement and savings accounts — but it’s even better if you’re automating those contributions. That said, you shouldn’t simply “set and forget” your contributions.
As you increase your goals (and hopefully your income), your savings should ramp up to accommodate those changes. “Incremental increases can have a huge impact on your future, without having a major impact on your budget today,” explains Farnham. Luckily, this is another habit you can automate: Set a calendar reminder to increase your savings contributions by at least 1% of your income every six months. (Some retirement plans even allow you to automate the increase.)
How Much You Can Save: If a person with 37 years to go until retirement increases her savings contribution by just an extra $50 each month, she could ultimately save another $105,000 (assuming a 7% annual growth rate) by the time she retires.
10. Dining Out to the Detriment of Your Budget
Many of us tend to use dinners out as a way to catch up with friends whom we haven’t seen in a long time — and even those who we see all of the time. Instead, why not meet up for drinks or coffee?
Even better: Stick close to home. “If you’re really just up for spending time with your friends, grab a bottle of wine, ask everyone to bring a dish, and host a movie marathon,” suggests Ellen Derrick, CFP with LearnVest Planning Services. “It’s about the company, not the overpriced appetizers!”
How Much You Can Save: The average American spends about $2,500 a year dining out. Even if you switched from one $25 dinner a week to two $5 catch-up coffees per week, you could save over $700 a year.