Senate Cents: A Financial Wellness Blog

These secrets are really not secrets at all, but instead are best practices in creating a budget, staying out of debt, and building your savings.

Here are few habits successful savers typically have that you could implement:

They have goals.

If you want to reach your long-term financial goals, you first have to identify what they are and then have an idea of how much money you'll need to reach them.

It helps to give each of your big goals an estimated price tag; that way, you can be sure you're putting enough money away each month for each specific goal. Making a mental note is not enough. If you don't have a specific plan, it will take you longer to get out of debt and you will very easily reach the point when you're ready to make a big purchase, and you won't be financially prepared.

How to Craft Smarter Goals in 2021 >>

They pay themselves first.

Paying bills on time is crucial to financial management, but what about paying yourself as part of that commitment? People who consider their future selves just as important as their monthly mortgage are more effective at building savings accounts. To build up your savings consistently, start "paying yourself first" by setting aside a certain amount each pay period for your savings account. Treat this account just like you would a recurring bill and, if possible, make it automatic.

They automate their savings.

One of the best ways to save more money, and keep your savings on track, is to make it automatic. If you don't automate your savings, you're much more likely to reach the end of the month and realize you've spent what you had planned to save.

So, once you figure out how much you can save each month, set up your paycheck's direct deposit to automatically send that money into savings. That way, the cash is saved before you have a chance to spend it.

If the money sits in your checking account all month, borrowing from yourself and your savings becomes way too easy. Regardless of how disciplined you think you are — even giving yourself that option can very easily throw your goals off track.

They know the difference between needs and wants.

Figure out what's important to you — both now and in the future — then make sure that your current lifestyle is aligned with your goals and the future life you want to have.

The longer you continue living paycheck-to-paycheck, the more difficult it becomes to break the cycle. So, the earlier you learn to spend less than you make, the sooner you'll be able to have a confident and empowered relationship with money.

And it's not about the amount of money you make; it's about adjusting your habits and lifestyle to improve your life both now and down the road. So when you start making more money, you can really benefit from the added income, rather than waking up one day and realizing you have no idea where it all went.

They live below their means.

If you want to get on the quickest path to reaching your goals, you have to start living below your means — and the best way to do that is to start paying attention to what's going on with your money so you can keep your priorities in line.

They don't waste money — ever.

Most people waste money in some way, shape, or form — and very often, it's simply because they either don't pay attention or pay for convenience — which can be the same.

People who've made it a habit to save don't waste money on things like ATM fees or purchases they could get cheaper elsewhere. If you can't put effort into avoiding wasteful spending, don't plan on reaching your goals or saving more money anytime soon. If you really want to save more, this has to part of your daily routine.

They find deals — everywhere.

There are so many ways to find deals these days; you should really never pay full price for anything.

Sure, it may take a few seconds or minutes to do a quick search for a coupon or better price online, but it's worth it if it will save you money. That's a habit that separates good savers from OK savers — always being on the lookout for the best price.

Many companies track your online activity, and then very often, they'll show you higher prices to get you to spend more money on their products. So if you don't do a quick search on what you're buying and spending, you could be missing huge savings.

In addition, getting a good deal isn't just about everyday spending. Here are some other easy ways you can get better deals and lower prices in your life:

• Shop for cheaper car insurance
• Switch to a cheaper cell phone plan
• Ask for a credit card rate reduction, or transfer an outstanding balance to a lower-rate card
• Find lower prescription prices
• Save on groceries by changing where you shop

They keep track of things.

If you don't track your spending, it's difficult to hold yourself accountable.

If you want to stop living paycheck to paycheck, you have to give every dollar a purpose. Tracking how much money is coming in versus how much is going out — and where exactly it's all going — is the key to making smart financial decisions that have a big impact on your life both now and in the future.

They know when to say no.

Asking yourself one simple question every day can have a huge impact on your money — both now and down the road: Is it worth it?

They don't care what other people think, say, or do.

Giving yourself the best chance at financial success means living a life that involves the right people, habits, and behaviors. It's about figuring out what really matters to you and your ultimate happiness because no one can decide that — or accomplish it — except for you.

So, stop worrying about the latest and greatest trends and what other people are spending their money on — because if you make your financial success a priority now, you'll look back and be thankful that you allowed yourself to get ahead and live a better future.

Once you start making small changes to your spending routine, you will quickly realize how big an impact it can have on every aspect of your life.

Each step you take, like paying off a debt or getting closer to a savings goal, will give you even more motivation to keep going because you'll be able to see the increasing control you have over your own life and your own money.

Start by going through your monthly expenses and take a good hard look at where all of your money is going. If an expense isn't aligned with your plan and goals, get rid of it.

Here's more information on creating a successful budget that works for you and your goals >>

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