We all know money provides security, control, freedom, and much more to enjoy a better and healthy life. That's something we all want - including myself. So, we look for ways and build better financial habits to reach a goal. And there are hundreds of tools, tips, apps, and methods out there. But the real question is: What habit or money-saving style actually works?
I'm going to give you actionable steps to help you get on track with reaching your goals because it helped me in my journey. I'll be a new homeowner in less than a month, and it took patience and discipline to stay on track. I'll share what you need to do to get started plus I’ll share Skyla’s great money-saving accounts that help you save for various life events and goals.
Start by starting. Yep - you read that right! Some people sit and think about their goals, stalling but never taking action to achieve them. Remember the inspirational commencement speech Beyoncé gave for the class of 2020? "Don't talk about what you're gonna do. Don't just dream about what you're gonna do... You, be it. Be about it. Be about that action and go do it.".
Although she was talking to students graduating during a difficult time in 2020, that inspirational message also applies here. Saving money for a goal can seem challenging until you get started, but once you know what you want to accomplish, the goal can be more attainable than impossible.
Be about that action by figuring out what you're saving for. In a previous article, I talked about setting attainable goals in the 7 Steps to Building an Emergency Savings Fund. Knowing why (or what) you're saving for is a huge motivator. It means it's important to you, and there's value in achieving it.
Whether you want to buy a house or a car, pay off debt, or just have $X amount in your savings account ready to use for whatever - make sure you know what your goal is. It's more achievable that way! Psst… If you have more than one goal, prioritize your list. This will help determine how much money you'll need to save and properly budget for it.
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Now that you know what you're saving for, it's time to understand what you currently spend so you have an idea of how much you'll eventually need to achieve your goal. Record your expenses by listing out every expense and bill you have. Don't forget what you typically spend for groceries, gas, eating out, and entertainment.
Once you've recorded your expenses, it's time to budget. If you're not sure where to start, you can use the 50/20/30 rule
For more details about setting up your budget, read up on the basics of building your budget to help you get started.
Knowing the amount of money you need to have saved by a specific time frame is a good motivator. You can set benchmarks to help measure performance over time and find areas of improvement if you need to revise your savings plan. Whether you're planning to buy a house, take a vacation, or pay off student loans, having a timeline in place will help you stay on track.
I know… easier said than done. You're not alone if your expenses are too high and you can't save as much as you want. It's time to really look at your costs to identify the nonessentials by asking “Do I really need this?” If the answer is “no,” then cut that nonessential out. Plus, you can look at those essential spends and see if there are ways to lower a phone bill, car insurance, internet or cable, internet with perks and discounts, or by shopping around with other companies.
QUICK TIP: If you're working from home full time or are a hybrid, you may be able to take advantage of your car insurer's low mileage discount. Some companies offer discounts to drivers who have less than average miles per year. Contact your insurer to learn if they offer and how to take advantage of this |
As a credit union offering personal and business banking solutions to more than 92,000 members - savings tools are available to help you. Between savings accounts, Certificates of Deposit, Money Markets, and IRAs, our products are built to help you reach any of your goals.
Take this Savings Style Quiz to determine what your style is and what product would be best for your specific needs.
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If you don't have one already, creating an emergency fund is important to help cover unexpected costs, such as a car or home repairs, medical and dental emergencies, or the loss of a job. Plan to save 3 - 6 months of your living expenses to create a healthy emergency fund. Check out our article 7 Steps to Building an Emergency Fund to learn more.
Unfortunately, life challenges do not discriminate based on bank account balances. Even if you have very little in savings, you could still get hit with an expensive emergency. But don't worry! There are a few best courses of action to take if emergencies or expenses pop up when you don’t have a fallback plan. Check out our article What If I Don’t Have Savings During an Emergency? to learn more.
Money provides security, control, freedom, and much more to enjoy a better and healthy life. If you're looking to achieve a goal, the first step is getting started. As you define your savings goals, grab a spreadsheet and write a list of things you're looking to accomplish within the year or the next few years. Keep that goals list along with a timeline of your plan visible, so you stay motivated.
Download the Smart Budgeting Guide will bring you back to square one and cover everything under the sun about creating a budget to help you jumpstart your financial success.