Sticking to a savings goal can be tricky. There are times when you don’t have any money, and then there are those days where it would seem that your spending is out of control.
However, saving cash should be a top priority if you want to achieve financial independence in retirement or some other period. With these three easy steps, sticking to a savings goal will become easier than ever before! Read on.
Automate How You Save
Automating how you save is a great way to keep your savings goal on track. You can set up automatic transfers from one account to another for service providers like gas companies and electric providers that offer this feature. These automated transactions make it so much easier for the money to go where it needs to go because you won’t have the temptation of spending money on something else that’s a little more fun.
Setting up an automatic deposit into your savings account from your paycheck. This can be done virtually with a bank such as Evolve Bank & Trust, and they will ensure that no matter what, some part of each payment goes towards saving – even if only a small amount.
Set up automatic deposits from your checking account to a savings account at the beginning of each month. This way, you know exactly how much money is going towards saving, and it’s not as tempting to spend that extra cash on something else.
Reduce Your Credit Card Usage
The easiest and most effective way to stick with a savings goal is by reducing your credit card usage. It’s easy to get into the habit of using plastic all over town which can limit you from saving.
Cut back on your credit card purchases to a bare minimum. Use cash or debit instead. Set up auto payments for recurring bills, so you don’t use your cards at all, and save receipts in case of an emergency which could lead to debt repayment assistance from the government if needed later on down the line.
Use your credit card for emergencies only. This is one of the most important ways to avoid debt and keep charging more on it when you’re not making enough payments back! If you know that there will be an emergency later, put money aside in a savings account instead so that it’s available if needed.
Have an End Goal in Mind
Achieving your savings goal is easier if you have a clear idea of what the end goal looks like. What are some examples? You may want to buy a house, learn how to scuba dive, or finally take that round-the-world trip you’ve always dreamed about. The answer will be different for each person.
For example, if you want to save $100 a month towards your round-the-world trip, how much will that be in total? You would have saved $1200 after one year. If you do this for five years, then you’ll have saved around $6000! This is the power of saving and investing with compound interest. So, ensure you have an end goal to help you stick to your savings plan.
This concludes the three-part series on how to stick with a savings goal. Hope you found some helpful tips for yourself or someone else!
