Small habits help shape a stronger financial future

Long version

Financial security doesn’t have to come from a big salary, a lucky investment or some dramatic turning point. For most people, wealth is built more simply, through small habits repeated many times over.

If you're like many young people, you may feel you don't have enough money to start investing. The reality is that you're in a great position to build the small habits that will help you create lasting wealth. Here are five tips to help you get started.

  1. Automate savings before you spend. One of the most powerful financial habits you can build is among the easiest. Set up an automatic transfer such as by contributing to an employer retirement plan or exploring if you can direct part of your paycheck to a savings or investment account.

    This helps remove the temptation to spend that money instead of saving it. Even setting aside 1% to 5% of your income can help build momentum over time.
     
  2. Watch the small stuff. It's easy to dismiss a $15-a-month streaming service or a $6 coffee twice a week. But those small purchases add up. Forgotten subscriptions, food delivery fees and impulse buys can quietly drain your bank account.

    “Just $25 a week, if invested well, can grow into the thousands in a few short years.”Scan your recurring charges regularly, cancel what you don't use and put that money to work instead.
     
  3. Don't let your lifestyle outpace your income. When you get a raise or bonus, it's tempting to upgrade your apartment, car or everyday spending. This “lifestyle creep” can be a significant hindrance to building wealth.

    Here’s an alternate approach: Every time your income goes up, increase your savings rate before anything else. Even saving half of a raise while spending the rest puts you ahead.
     
  4. Start now, even imperfectly. Don’t wait to start investing. Even if you can only set aside a small amount each month, do it. Starting just five to 10 years earlier can result in significantly more wealth down the line, even if the early contributions are small, thanks to compounding.

    Compounding means your contributions earn interest, and even that interest earns interest. Over decades, that snowball effect can make a world of difference.
     
  5. Stay aware, not obsessed. You don't necessarily need to track every dollar you spend. But you do need to be aware of your money habits. A quick weekly or monthly check-in on your accounts, spending patterns and progress toward savings goals can help you catch problems early.

    Financial awareness also means protecting what you build. An emergency fund covering three to six months of total expenses keeps one bad month from becoming a financial crisis. Avoiding high-interest debt does the same. These defensive habits make everything else possible.

    Your financial future likely won't be shaped by one big decision. Instead, it will probably be built by small choices you make every day. And the best time to start making good choices is now.

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This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

Number of words: 494

Short version (radio/print)

Financial security doesn’t have to come from a big break or a high salary. Wealth is often built through small habits repeated many times over.

If you’re young and just getting started, time is your advantage. Begin now with these five small habits that can help build lasting wealth.

First, automate your savings. Pay yourself before you spend. Even 1% to 5% adds up over time.

Second, watch the small stuff. Subscriptions and coffee can quietly drain your money if you’re not paying attention.

Third, when your income increases, like through a bonus or a raise, increase your savings first before you spend.

Fourth, start now. Even with small savings early, your money has time to grow, thanks to compounding, where your money earns interest and that interest earns interest.

Finally, check in weekly or monthly, and build a safety cushion. Stay aware, not obsessed.

Your future wealth starts with small choices, so start early and stay consistent.

This content was provided by Edward Jones for use by (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #). Member SIPC

Number of words: 158 (excluding FA’s name, address/phone number)