Whether you’re a baby boomer struggling to the finish line so you can retire or a millennial facing your first adult responsibilities without a plan, you need some strategies to increase your savings and become financially secure.
Millennials, born between 1980 and 1996, are actually a bit better than members of Generation X, born between 1965 and 1979, in their day-to-day money management, but they’ve typically not begun to prioritize saving money, according to Financial Finesse, a provider of financial education for employees, in its 2013 Generational Research study released in January.
Generation X trails all other age groups in cash management, while baby boomers and seniors need to protect their wealth and shore up their emergency savings accounts.
While some savings tips are ideal for specific age groups, everyone can benefit by following this advice from Ric Runestad, owner of Runestad Financial Services in Fort Wayne, Indiana.
“One of the best strategies for saving is to avoid financing purchases,” Runestad says. “A better way to buy things is to make the ‘payment’ to yourself in the form of savings until you have enough to buy the item outright. This will save in financing costs, reduce exposure if your income goes down and will start to create a habit of saving. This is what we call ‘paying yourself first,’ and it works.”