HAPPY NEW YEAR! No doubt you’re seeking areas of your life to improve during 2016. Am I right, or am I right? 🙂 The first post of 2016 here at Mad Money Monster is going to explain how some people have become Super Savers. Super Saver is a term that describes someone who is fanatical about saving the money they earn. In preparing for this post, I was scouring the web to determine the exact savings rate it takes to be considered a Super Saver. I was unable to find an exact percentage; but, it’s pretty clear that some of these so-called Super Savers are stockpiling 50%, 60%, 70%+ of their TAKE-HOME pay. Yes, you read that right. They’re saving upwards of 70% of their pay AFTER taxes and AFTER retirement contributions! I know it sounds extreme, but so does retiring decades before the traditional model tells us we can. If you’re looking to shake things up in the new year, read on…
What Sets Super Savers Apart From The Pack
The difference between Super Savers and regular savers is their goal-oriented modus operandi. The most common goal is early retirement. And by early retirement I mean retirement in their 30s, 40s, or 50s. According to these folks, anyone with an average to above-average income can save enough money to retire in about a decade (see Mr. Money Mustache). Super Savers work to increase income AND cut expenses.
Super Savers don’t just cut out lattes and fast food. They examine the big expenses. They examine their choice of housing and cars. They also follow through on making some drastic changes to reach their financial goals.
They are on a mission to widen the gap between their earned income and their expenses. The gap is what they save. The wider the gap, the faster their money grows, and the earlier they gain financial freedom. And guess what. YOU can do it too! Read on to learn how Super Savers operate in certain areas of life.
Debt? What’s that? Enough said. Super Savers do not live with debt. It is completely counterproductive. Super Savers do everything possible to not take on any debt. And if it is unavoidable (think college), they make paying off debt their biggest priority. That goes for student loans, car loans, and especially credit cards. If you’re in debt, get out of it. Fast.
Where Do Super Savers Live?
Super Savers live everywhere. You could have a Super Saver neighbor and not even know it. In fact, you probably wouldn’t know it unless they told you. They look and act like everyone else; this is what makes them so dangerous. Just kidding 🙂 Super Savers live in houses and apartments alike. They are extremely intentional about keeping their living expenses low and saving the difference. A Super Saver will live in a much smaller home with much smaller taxes and utility bills than their co-worker with the same salary. They don’t define themselves by their “stuff“. They define themselves by the quality of their life and the company they keep.
A Super Saver, or someone becoming a Super Saver, will examine their living quarters. If they deem their pad is holding them back from reaching their financial goals, they’ll move. They will actually take a stand against American consumerism. And so can you! Don’t worry, after doing it a couple times it’ll start to feel good!
What Do Super Savers Drive?
Don’t expect a Super Saver to be driving a gas-guzzling H2 around town. You’re much more likely to see a Super Saver driving a pre-owned, fuel-efficient Hyundai than a flashy BMW. Many Super Saver households have gone extreme and cut their vehicle arsenal down to one pre-owned car. That’s right, some families live with only one vehicle in their driveway. Just like grandma and grandpa used to!
In fact, some Super Savers keep driving to an absolute minimum. They use a bicycle instead. They bike to work. They bike to the grocery store. They bike to…well…you get the idea.
Housing and cars are just two major categories that Super Savers will examine and adjust, as needed. They also examine EVERY OTHER AREA of spending money. Their goal is to save and invest as much as possible. This will free them from having to devote 40+ hours of their life each week to working for someone else. Instead, they will have the freedom to spend that time pursuing other interests and spending it with their friends and family. The short-term sacrifices, in their eyes, are worth it.
2016 In The Mad Money Monster Household
It’s no surprise that Mr. Mad Money Monster and I are Super Savers. We are set to have a savings rate right around 60% this year, NOT including our maxed out retirement contributions. Last year we made a conscious shift in our way of life. We ditched consumerism to live a better life. We decided against buying the big, expensive house, we maxed out our retirement contributions, we worked feverishly to pay off residual debt, and even cut the cord! We’re looking forward to seeing the progress we make towards our Countdown Goal in 2016! Go Team!
Do you plan on becoming a Super Saver in 2016? Are you already a Super Saver? Tell us your story.
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