Lesko Financial: Tips to Build a Better Nest EggPosted: Updated:
Bryanna: There’s one simple technique shown to help people build a better nest egg… but most Americans tend to ignore it. Greg Lesko of Lesko Financial explains.
Greg: An investing firm looked at the financial habits of a cross-section of Americans, aged 21 to 75. Their research backed up previous survey's that showed one major difference between those who succeed at building wealth and those who fall short. Both groups said they had financial goals and a plan, but only a small portion actually bothered to turn those goals into a written financial plan. The simple act of writing it down, on paper or online, seems to separate those who build wealth from those who only wish they had.
Bryanna: How does a written financial plan help?
Greg: Researchers noticed that those who took the time to understand their finances and commit to a written plan were also more likely to have money habits that help build their savings and investments. For example, a majority of those with a written plan also have a household budget compared with the smaller group without a written plan. More of them also have an emergency fund and a monthly savings goal written down, of course.
Bryanna: What other habits did those who had written plans use to build wealth?
Greg: A larger percentage of them know their net worth, have an up-to-date-will, invest beyond their workplace retirement plan, and tend to max out their retirement savings contributions. The message is clear: know your finances, write down your goals and plans and commit to them. It’s hard to get where you want to go without a road map.