Savings Goals for the New Year
We know…saving money isn’t always easy. In fact, if you’re living paycheck to paycheck, it can be downright impossible to save money for anything.
If you’ve received any advice about saving, it most likely goes something like: make a budget, cut back on expenses, start with an emergency fund, etc. Those are all true statements, but they don’t exactly motivate or inspire you, right?
Here’s a new approach to saving money…Start by finding something you’re passionate about or something that inspires you!
Step 1
Plain and simple, what would you buy if you had the money? What is something you’ve always wanted but has always seemed out of reach? It could be an object. It might be an experience or even a medical procedure. Make that your savings goal.
Step 2
Determine the total cost of your goal. If there’s travel involved, be sure to research lodging, airfare, meals, etc. Once you have current costs, add about 10% to account for rising prices during the time it takes you to save the money. If prices don’t increase, you’ll have extra spending money or a jumpstart on a new savings goal.
Step 3
Set dates for your goal. This is important, because it motivates you to keep saving. Put your goal on a calendar, and you can actually see your progress from month to month. Setting dates also helps you determine where you want to save that money – a share savings account, money market account, share certificate, Christmas club, etc.
Step 4
Start saving. The easiest thing to do is divide the total amount of your goal by the number of pay periods it will take you to achieve it, and set up automatic savings through online banking or direct deposit from your employer. Every time you get paid, a set amount of money will be deposited automatically into your savings account.
For help with your savings goals or deciding which account is the right one for your savings goals, contact us.
