Scroll through any social media app and you’ll think that financial advice is changing by the hour. Yet these eight boomer tips for saving money have the staying power because they work, even if they don’t seem the most “on trend.”
Live Below Your Means
Lifestyle inflation is real, and for many, it’s only getting worse. Even if you’ve recently had a bump in income, boomers know better than to live outside their means. If you can resist the temptation to spend more as you earn more, you’ll have more in savings and investments, leading to better financial security in the long run.
Stick to Your Budget
Budgeting is a tried-and-true strategy that’s just as important as ever for managing your money efficiently. Baby boomers tend to emphasize the need for a detailed budget that accounts for every last penny of income and expenses — and you should probably do the same. Tracking your spending can help you see where you might be overspending, save money, and make better choices based on your financial health.
Set Up an Emergency Savings Account
Baby boomers generally recommend saving three to six months’ worth of living expenses in a dedicated savings account. But the majority of Americans don’t even have enough to cover their expenses for a month or so. If you haven’t already, do yourself a favor and start an emergency account as soon as you can — your future self will thank you.
Use Your Employer Benefits
A lot of baby boomers took advantage of employer-sponsored retirement and health benefits. And it’s just as vital to make the most out of any and all benefits offered by your employer today. Whether it’s a 401(k) plan, health savings account (HSA) or other perks, make sure you understand and utilize these resources as much as you can.
Steer Clear of Debt (Mostly)
“Debt is bad” isn’t entirely true, but it’s a mantra that many boomers still subscribe to. It’s better to have this mentality than to drown in debt. Yet the most important thing is to just avoid high-interest credit cards and loans.
Invest Wisely
Investing is a key part of building wealth, and boomers will be the first to tell you this. Don’t hesitate to invest or buy stocks — provided you take the time to talk to financial professionals and educate yourself with the right resources.
Shop Smart and Compare Prices
Boomers like to shop for bargains and are willing to shop around before buying. And with there being so many options now, that advice is more pertinent than ever. Chances are that if you dig far enough, you’ll find a deal waiting for you. Either that or simply shop during sales and clip coupons; every little bit of smarter shopping counts.
Focus on Experiences, Not Just Things
Last and most importantly, one of the greatest lessons we can take from baby boomers is to focus less on material things. If you’re going to spend money on anything, it should be experiences, like vacations, education, or time spent with friends and family. Creating meaningful experiences is what makes life worth living — it just so happens to have the added benefit of saving money.
