Our habits have a greater impact on our savings goals than we think.
Without basic money skills, it’s easy to make poor financial choices regardless of how much money you make. The key to lasting financial fitness lies in a foundation of healthy spending and saving habits.
You don’t necessarily need to go on a spending overhaul to get your financial goals back on track. With time and consistency, small changes add up and can make a big impact on your financial future.
Did you know the average American spends $1,200 each year on coffee, and 41% of Americans spend more on coffee than they put into savings? Most of us have items in our monthly budget that seem small, but add up. For example, running to the convenience store for your daily afternoon snack may not seem like much, but $3 a day can have a big impact on your bank account over time.
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COFFEE Monthly: $40 Annually: $500 40 years: $80,276 |
MOVIES Monthly: $25 Annually: $300 40 years: $50,234 |
LUNCH Monthly: $100 Annually: $1,200 40 years: $200,938 |
Time is a powerful multiplier. Making coffee at home or packing your lunch a few days a week can give your savings accounts a big boost when invested right. Imagine the impact these tiny differences could have on your retirement savings goals!
Nextep 401(k) accounts have an automatic increase feature allowing participants to increase their contributions a small amount each year. With annual automatic contribution increases, you can know you’re moving toward your savings goals without having to actively change your contribution elections.
Not a client at Nextep? No problem! Simply ask your retirement specialist if auto-contribution increases are an option for your plan.
Let the Nextep retirement team partner with you to help make your savings goals a reality. Use the retirement icon in your Nextep account to log in and ensure you’re on track, or reach out to us at 401k@nextep.com.
