5 Pro Tips to achieving your savings goals
What’s your savings goal?
Some people want to stash cash for a home, while others need to save for their kids’ college. Not sure yet? There’s no time like the present to figure out long-term financial priorities for you and your family.
No matter your goal, achieving it is easier when you follow these specific guidelines. Check it out:
1. Set a timeline
Timelines help put your goals into focus.
For short-term goals like a vacation, you may be able to set an exact date by which you plan to save. A long-term goal such as retirement, however, maybe a little more open-ended and require benchmarks along the way.
So if you set a number for your retirement target, measure your progress through the years by hitting planned dollar amounts.
2. Find ways to cut monthly expenses
Savings may require some sacrifices. If you want to save more in a shorter amount of time, take a look at your spending habits. Can you eat out less? Wait to upgrade your smartphone until it’s necessary? If your goal dollar-amount is high, you might want to consider bigger actions, such as moving to a more affordable area.
3. Use a savings tool
For many long-term savings goals, investments and special accounts will help you earn more money. Typically, experts recommend mutual funds for goals over five years. For shorter-term goals, your financial institution may offer a money market account with a high rate of return.
4. Don’t give up
As with any other type of goal, you may experience setbacks along the way, such as a sudden change to your financial situation. Try not to get too discouraged. Adjust your finances to meet your immediate needs, but don’t forget your end game.
5. Reward yourself along the way
Maintaining your money motivation can be difficult, especially over a long period of time. That’s why it’s important to treat yourself along your savings journey.
If you hit a benchmark (e.g., six months of consistent savings or a specific dollar amount), do something nice for yourself. Just try not to blow your budget on a big celebration; that kind of defeats the purpose.