Here’s How To Ensure You’re Saving More Money Than Your Siblings
Written by
Laura Beck
Edited by
Jenna Klaverweiden
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Unfortunately, sibling rivalry doesn’t always end after childhood. It can sometimes shift to new battlegrounds. Think career achievements, homeownership and, yes, financial success. If you’re interested in beating your brothers and sisters in all things finance and saving money, you’ve come to the right place.
In the spirit of National Siblings Day, here’s how to ensure you’re saving more money than your siblings.
Also see five ways to still save money when everything seems more expensive.
Create a Concrete Savings Plan With Specific Targets
The first and most important thing to do is plan, plan, plan. The simple difference between wishful thinking and actual saving is all about a concrete plan with specific numbers. Most people don’t save enough because they haven’t set clear, measurable goals.
To get started, establish three tiers of savings goals: emergency fund (three to six months’ worth of expenses), medium-term goals (home down payment, car replacement) and long-term retirement savings. Plug in your numbers and then start making a plan to hit them.
Like many people, your siblings may just be saving whatever’s “left over” each month, so proactively automating your savings gives you a major advantage.
Pro tip: Set up automatic transfers to savings accounts on payday before you have a chance to spend it.
Maximize Your Employer Benefits
This is a biggie. Take the time to thoroughly review your work’s benefits package and maximize every available option.
For example, if your employer offers a 401(k) match, you should contribute at least enough to get the full match. It’s essentially free money your siblings might be missing.
If you want bonus points, look into your company’s HSA (health savings account), which provides triple tax advantages when used for medical expenses. Your siblings could be like many American workers who overlook its powerful wealth-building potential.
Create Multiple Income Streams
If you want to save more money, an easy way to do that is to make more money. If you can, get several streams of income going outside of your primary job. If that stresses you out, don’t worry — even starting with just one extra source of income will increase your savings rate compared with any siblings who collect only one paycheck.
But what exactly should you do? There are lots of options. Consider starting a side hustle based on your skills, investing in dividend-paying stocks or exploring rental property opportunities if you have the capital.
Embrace Minimalism and Strategic Spending
Saving more isn’t just about earning more; it’s about spending less on things that don’t truly matter to you. You can adopt this mindset by asking one simple question about every purchase: Do I really want or need this?
If your siblings are falling prey to lifestyle inflation, simply stopping to think before you buy can put you ahead of them financially.
Become Financially Educated
Perhaps the biggest differentiator between prolific savers and everyone else is financial literacy. While your siblings might be following generic advice or making decisions based on what friends are doing, you should take the time to educate yourself about personal finance.
Taking the time to understand concepts like compound interest, tax-efficiency and investment risk can naturally lead to better financial decisions.
To get started, read personal finance books from trusted authors, listen to reputable financial podcasts and consider working with a financial advisor to create a custom plan that’s perfect for you.
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