How to Be a "Super Saver"

(CBS)  Everyone knows someone who seems to save more than they spend. But what about people who are putting away more than half of every dollar they make?

In this month's Money magazine, senior writer Donna Rosato shares secrets of so-called "super savers," and what they have in common.

According to her report, super savers delay gratification, have no impulse buys, have an absolute avoidance of debt, automate their savings, and are flexible.

And on "The Early Show on Saturday Morning," two "super savers," Ed Haskell and his wife Debbie Chasteen, shared how they've saved more than $2 million for retirement.

Haskell explained the couple has been saving for almost 21 years. Their annual average income is around $80,000.

He said, "We've been able to save about half of that - 50 percent of it - each year for 21 years, and that adds up."

The couple has tried to avoid any type of debt completely.

Haskell explained the couple didn't buy a house until their mid 30s because, as an Air Force officer, he moved around often. When they did settle, they paid for their first house in cash.

They also settled in Macon, Ga., which Haskell explained, has a low cost of living. They also paid for their second house in cash.

Chasteen said planning is a big part of their strategy.

"We like to do a lot of research and find where we can get the best value for our money. So we decide, maybe we want to do a beach vacation, and so we'll do research to find out where is the most economical, where is the best place to go when we have the time available to take the vacation. So we just made a nice trip to Florida this past year."

But what if you're not a "super saver"? How can you save more money?

Rosato recommends automating your savings.

She said, "If you put your money away, have the money taken out before it can ever get into your wallet, you'll never spend money that you don't have."

[roknrol01]

gotta love the folks with a nearly six figure income explaining their savings strategy!!! "make more money, save more money" its very very easy. MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY MONEY OMNEY MONEY MONEY!!! I stopped paying my credit cards and to hell with the greedy banks and all you greedy people. i FART in your general direction!

[Veridad]

Contrary to some of the opinions expressed here, I have found that saving is not only rewarding but fun. I remember the days when I was young and had such a meager income that I worried about how I was going to buy extra toilet paper when my folks came to visit. That didn't discourage me from making savings a priority, however. I always paid savings first, utilities + rent/mortgage second, food third. After I had enough savings to tide me over for a year in case I lost my job - I gave myself a $5/week allowance. Out of that I bought Christmas and birthday gifts and anything else I wanted. Every time I got a raise or bonus - I put 100% of it in the bank or applied it to my mortgage so could pay it down faster. I always paid cash for cars. As my husband and I got established, we were more liberal with ourselves and our kids because we could afford to be. We had a house, cars, nice furnishings and clothing - and no debt. When retirement rolled around, we had ample savings for ourselves till we die and for our children after we are gone. That's a good feeling.

[bob_marion]

I enjoy seeing inspiring stories about how ordinary people do extraordinary things. You can click on the link to the Money magazine article on super savers for more information on the savings tips. Paying yourself first and avoiding debt are good tips for everyone even if you can't save half your income.

[MPHgrad]

Way to go! It is great to see Financial Peace and Total Money Makeover at work. Debt free is the way to be.

[book_of_wally]

Its really interesting the the similarities of what is going on during a certain year and the name of the winner of the Kentucky Derby.

[tmittelstaed]

Excuse me but the math on this just doesen't add up. Half of $80K is $40K and $40K multiplied by 21 years is $840,000.00 That is not even a million, and not anywhere "nearly 2 million" If they were putting their ENTIRE income into savings for the last 21 years they still wouldn't have "nearly 2 million" And this $80K is BEFORE taxes, the idea that they are saving half of their AFTER TAX income of $80K a year for 21 years and somehow ended up with "nearly 2 million" is a load of baloney,
even including interest compounding on a passbook account.

And as far as investments go, well sorry but the stock market is the same place it is today that it was a decade ago, meaning if you had your funds in a stock fund then you have the same amount of money in your fund today that you had 10 years ago. Even if for the last 21 years they were putting their savings into a high yield stock fund they still aren't going to have "nearly 2 million" today.

The only possible way they could have nearly 2 million today is if they were very lucky in investment timing. If for example they were flipping homes and got out of that right before the economic crash, or one of them follows the stock market as a hobby (which means at least 2 hours a day studying the market and it's trends - not a hobby that many people engage in) of they had other income sources that the article isn't mentioning.

Also, very few 30 year olds have cash to buy their first home. I would like to hear the wild-azz story about how they saved up money for that.

This couple has other income that the article didn't declare, simple as that. It's either investment income that is unusually good for the typical investor, or as another poster said inheritances, or something else.

[haskelle]

We're the family profiled in this story. We also have a 15 y/o daughter. Your math is correct - 21 x $40k per year. Added to this was our investment returns of 21 + years. We were aggressive investors, especially in the 80's and 90's and had a lot of luck with some growth stocks. We also moved our assets to less risky investments in 2007, thus avoiding much of the debacle of 2008 & 2009. We bought our first house at 35 years old and had been both working since we were 21. Fourteen years of savings during that period allowed us to buy our first $105,000 townhouse. No real estate flipping for us - just two house purchases, lots of saving, and educating ourselves on how to invest.

[KeithDrippingSprings]

Saving is a luxury for folks that make more than survival wages. If you make 40,000 a year, after house payments, insurance and taxes there really isn't much left. Saving is a fools game if you check out history. If you saved 100 dollars in 1980 it wouldn't buy as much today with all the interest included than the 100 dollars would buy in 1980. You would have lost value

[WriterOfMD]

$80,000 annually??? I'd settle for even half of that!!! There would still be no money saved, but at least more of the necessary bills would get paid!!!

[JavMD]

If I could make 80 thousand a year I could save also. When I did make over $50 thousand a year, I did save alot with the company matching 401K, but since the plant closed years ago... and I'm now 58, I can't get a decent job though i should be paid 80 thousand a year, but no one wants to hire someone who could possible retire in less than 5 years or so.

CBS... drop this F..ing article about saving. Try articles on the 15 % of the working force trying to just live ! I have a 'temp' job, just got extended till end of year. What will I do then? How will I pay my mortgage.

F...ing banks raised credit card interest rates, i barely make a living and you want me to pay down my credit card debt? Why should American Express be allowed to charge over 16% interest?????

I'm in deep do-do come end of year and I can't find my next job. I went into deep debt to put 3 kids through college over a 10 year span, i drive a 1998 vehicle and the one cylinder is bad, driving on 5 out of 6 cylinders, had to spend $300 trying to fix it to try and pass the emissions test in this county, but a mile away, people don't have to in the next county over. Sad... How government is so wrong in their intent to 'clean' air etc.

Meanwhile the state PUCO allowed an unnoticed electric company new rate structure and my all electric house, heat in winter, in a 1970 house... the electric bill doubled, over $700 in January and Feb over $700, I died this past year, super high interest rates, super high electric bills...

who cares, the 85% working people can stimulate the economy, because without a decent job to pay my bills, i will be living on welfare soon and lose my house, so close to paying it off in a few years...

the recession might have just as well be a depression, because we got it bad

[GeWay]

Can't express your opinion without obscenities? No wonder you're jobless at 58.

[JavMD]

after all i go through, you can only comment on my swearing? even some congressman, senators and joe biden lets them out and they run the country. The trouble with the rest of the well off working percent and thats how you react? I'm not perfect, success is not always rated by amount of money, I'll wait to meet the 7 people in heaven, that will decide, (whether my swearing means anything. So.. tell me how you really feel

[SunDog8259]

I chuckle at those commercials "are you ... me?", but I recently read on CBS you can save a bunch of money flying coach as opposed to almost $5,000 for 1st class. I haven't done well on CD's though overall, and just lost 3K this year. I seldom worry about saving on small things like toothpaste, but I do try to cut back on energy use. I use a smaller fridge and it saves me $20 a month. I also eat whole foods and eschew the more expensive processed stuff.