www.principal.com Open in urlscan Pro
2a04:4e42:e00::740  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Skip to Content
 * For Individuals
 * Invest & retire
    * Ways to Save
      * Roth & traditional IRAs
      * Rollover IRA
      * Annuities
      * Retirement plans
    * My Retirement Plan
      * Enroll in your 401(k)
      * Rollover an account
      * Find a form
    * Get Help
      * Help for individuals
      * Find a financial professional
   
   Your financial future starts here
   
   Discover your path to investing and retirement

 * Insure
    * Ways to Insure
      * Disability income insurance
      * Disability income retirement security
      * Estate planning & irrevocable life insurance trusts
    * My Insurance
      * Find a dentist
      * Find a vision provider
      * Find a form
      * View a claim
    * Get Help
      * Help for individuals
      * Find a financial professional
   
   Peace of mind starts here
   
   Discover how insurance can help you protect what matters

 * Build your knowledge
    * Getting Started
      * Money basics
      * Investing 101
      * Just getting started
    * Living Your Life
      * Major & unexpected life events
      * Your career
      * Your family & home
      * Tough money questions
      * Taxes
    * Looking Ahead
      * Build your own financial plan
      * Planning for & protecting your future
      * Retirement
   
   See all topics and articles

For Businesses
Search
Clear
SearchLoading


Close search
Log inMenu
 1. Individuals
 2. Build Your Knowledge
 3. 5 lifelong financial habits anyone can do




5 LIFELONG FINANCIAL HABITS ANYONE CAN DO

By the time you reached elementary school, you probably already did some
good-for-you things by habit, from brushing your teeth to tying your shoes and
even saying “thank you” (from time to time).

Research backs up early habit making: A lot of it happens by the time we’re
about age 9.1 It stands to reason, then, that when it comes to managing your
money and saving for goals, the earlier you can figure out what works for you,
the better.

The people who’ve been able to accelerate their saving and manage their debts
don’t possess any insider knowledge. What they do know is that a couple of
habits, started as soon as possible, make a big difference. You can do them,
too.


1. LIVE WITHIN (OR BELOW) YOUR MEANS.

Small changes do make a big impact over time, and that includes creating a
budget and managing your expenses so you’re always spending less than you earn.
Changes that might help:

 * Drive older vehicles.
 * Own a modest home.
 * Travel, but travel less.
 * Dine out less.
 * DIY when possible.

“It’s about making smart financial choices, but not sacrificing quality of
life,” says Heather Winston, assistant director of financial advice and planning
at Principal®. “We make time for the things we find most important.”

A young couple has a big goal: Retire before age 50. Read their story about
being part of the Financial Independence Retirement Early (FIRE) community.


2. MANAGE YOUR DEBT.

Paying for a pair of jeans you like or a new coat you need can be easy to
include in a budget. But saving up for big-ticket items like a car can be
harder. A lot of people need to borrow: About 44% require a loan to buy a
vehicle.2



So say you have debt—a car loan, a student loan. You’re making room for it in
your budget, but you also want to pay it off sooner, if you can. One tip is to
always pay off credit card purchases so you don’t carry that debt. (Checking
your credit score doesn’t hurt, either. Learn how to review your credit
report.) And then choose one of two debt-payoff options to get through those
payments quickly:

 * Avalanche: Pay off the highest-interest balance first, then the next highest,
   and so on. 
 * Snowball: Pay off the smallest balance first, then the next smallest, and so
   on.

--------------------------------------------------------------------------------

Learn more about managing debt.

--------------------------------------------------------------------------------


3. PLAN FOR RETIREMENT.

Many people who’ve accelerated retirement savings put away about 15% of their
income. Sounds like a lot, right? But they started as early as they could—their
mid-20s—even if it was just a little. These four strategies may help you
gradually get to that goal.

 1. Get the (free) money. Save enough to receive the maximum employer match in
    your retirement plan if offered.
 2. Increase your retirement savings, at least by 1%, each year or when you
    receive a raise.
 3. Work your way up to 10%–15%. It might take you a few years. That’s OK.
 4. Check your progress at least yearly. Rebalance your funds if needed or
    consolidate if you have previous savings that you can roll into one account.

“One way to look at it is to treat saving for your future like another bill you
pay each month,” Winston says. “Automatic withdrawals from your paycheck to your
retirement account allow you to pay your future self, first.”




4. SAVE FOR EMERGENCIES.

Would a $500 expense throw off your budget in a big way? “If the answer is yes,
it’s a good idea to set up an emergency fund,” Winston says. “That way, the
unexpected doesn’t derail your long-term plans.”

Several months of income is generally the advice for an emergency fund, but just
starting with something—even $100 a month—helps create that savings habit. Add
to it gradually as you’re able, including lump sums, to build toward three to
six months of savings for unexpected events.

--------------------------------------------------------------------------------

Learn how to start and build your emergency fund.

--------------------------------------------------------------------------------


5. KEEP LEARNING ABOUT MONEY.

Those early, easy habits can help you lean into learning about how to achieve
bigger, long-term financial goals. Do you want to own a second home, for
example? Take big yearly family trips? Retire early? There are lots of ways for
you to build on your skills. (You went from teeth brushing to living on your
own, after all.)

“Education drives confidence, and confidence drives action,” Winston says. “Even
investing a small amount of time learning more about personal finance may
provide a huge boost to your self-confidence in financial decision making.”


NEXT STEPS

 * How much are you saving for retirement next year? Log in to your Principal
   account to see how you’re doing and adjust. First time logging in? Get
   started by creating an account.

--------------------------------------------------------------------------------


READ NEXT

Want to keep more money this tax season? These 10 strategies can help.

What is a stock?

What is a bond?

1 https://www.tandfonline.com/doi/abs/10.1080/01926187.2014.935684#.VO-XOXzF_Td

2 Federal Reserve Bank of New York

3
https://media.ally.com/2019-08-26-U-S-Consumers-spent-an-Average-of-Nearly-2-000-on-Vehicle-Repairs-and-Maintenance-in-the-Last-Five-Years-Ally-Survey-Finds

4 https://www.fool.com/research/average-retirement-savings/

The subject matter in this communication is educational only and provided with
the understanding that Principal® is not rendering legal, accounting, investment
or tax advice. You should consult with appropriate counsel, financial
professionals or other advisors on all matters pertaining to legal, tax,
investment or accounting obligations and requirements.

Investment advisory products offered through Principal Advised Services, LLC.
Principal Advised Services is a member of the Principal Financial Group®, Des
Moines, IA 50392.
 

OUR COMPANY

 * About Us
 * Investor Relations
 * News Room
 * Sustainability

WE'RE HIRING

 * Careers
 * Global Jobs
 * Financial Professional Opportunities
 * Internships
 * Recent Graduates

OTHER SITES

 * For Dental Providers
 * For Financial Professionals
 * For Institutional Investors
 * Principal Funds

GET HELP

 * 800-986-3343
 * Help Topics
 * Contact Us

 * 
 * 
 * 
 * 

 * Terms of Use
 * Disclosures
 * Sponsorships
 * Privacy
 * Security
 * Report Fraud
 * Site Map
 * Internships
 * Global Jobs
   
 * Español

© 2022, Principal Financial Services, Inc.

Securities offered through Principal Securities, Inc., member SIPC




COOKIES ACCEPTANCE



By clicking “Accept all”, you agree to storing cookies on your device to enhance
site navigation, analyze site usage, and assist in our marketing efforts. More
information can be found by clicking "Manage cookies".

View our Digital Privacy and Cookie Policy



Manage cookies Accept all



FILTERS

Information storage and access
Cancel Apply



PRIVACY PREFERENCE CENTER

When you visit any website, it may store or retrieve information on your
browser, mostly in the form of cookies. These “cookies” of information might be
about you, your preferences, or your device, and they’re mostly used to make the
site work as you expect it to. Cookies don’t usually directly identify you, but
they can give you a more personalized web experience. Because we respect your
right to privacy, you can choose not to allow some types of cookies. Click on
the category headings to read more or change your default settings. (Note:
Blocking some types of cookies may impact your experience on our site, as well
as the services we can offer you.)
More information


 * STRICTLY NECESSARY COOKIES
   
   Always active
   Strictly Necessary Cookies
   
   
   These cookies are necessary for our website to function and can’t be switched
   off in our systems. They’re set for you behind the scenes when you do things
   such as log in, fill out forms, make a request for services, or set your
   privacy preferences. You can set your browser to block or alert you about
   these cookies, but some parts of our site won’t work without them.
   
   Cookies Details‎


 * PERFORMANCE COOKIES
   
   Performance Cookies
   
   
   These cookies allow us to count how many times people visit our website, and
   how they get here, so we can measure and improve its performance. They show
   us which pages are the most (and least) popular, and how visitors move around
   on the site when they’re here. If these cookies are, we have less information
   about how to improve our sites that will be useful to you.
   
   Cookies Details‎


 * FUNCTIONAL COOKIES
   
   Functional Cookies
   
   
   These cookies enable our website to work smoothly and in a manner
   personalized to you. They may be set by us or by third-party providers whose
   services we’ve added to our pages. For example; downloading a customer
   service form using PDF. If these cookies are blocked, then some or all of
   these services may not function.
   
   Cookies Details‎


 * MARKETING COOKIES
   
   Marketing Cookies
   
   
   These cookies may be set through our site by our advertising partners. They
   may be used by those companies to build a profile of your interests and show
   you relevant advertisements on other sites. If these cookies are blocked, you
   will experience less targeted advertising.
   
   Cookies Details‎

Accept all Confirm my choices
Back Button

Back



Vendor Search Search Icon


VENDORS LIST

Filter Icon Filters (0)
Consent Leg.Interest

Select All

Select All Vendors
Select All Vendors
Select All Hosts

 * 
   
   View Cookies
   REPLACE-WITH-DYANMIC-HOST-ID
   
    * Name
      cookie name
      Host
      cookie host