Every person has financial goals that need to be accomplished; whether that be building up an emergency fund, paying down debt or saving for retirement. Achieve these goals requires planning and determination.
One way to save is to set a specific savings goal with a clear timeline and deadline. Huntington offers tools such as Citizens Savings Tracker(sm) that can assist in this regard, or consider automating payments into savings each payday through direct deposits or automatic transfers.
1. Set a budget
Setting big financial goals is fantastic, but it's equally essential to ensure your money is going where it should. A budget is one way of accomplishing this task.
Setting savings targets using the SMART formula (Specific, Measurable, Attainable, Relevant and Time-bound) should reflect what amount is necessary to reach your financial goals. Once that's in place, have an automatic transfer from your paycheck or checking account sent directly into a savings or investment account.
Implementing this plan will allow you to feel more in control of your money and easier adhere to a budget. Plus, using the funds immediately means making progress toward financial goals faster!
2. Pay yourself first
Paying yourself first can help you build savings and meet financial goals more effectively. Doing this involves setting aside a percentage of your income into savings or debt repayment instead of monthly expenses and other purchases that might arise during the month.
Reverse budgeting can help keep you on the path towards meeting financial goals more quickly, by encouraging savings as an active habit and staying on course with larger goals in the future.
But this approach may not be helpful for people living paycheck-to-paycheck or carrying significant debt like a mortgage loan. Instead, they might want to prioritize paying off higher-interest debt as part of daily finances rather than using it as an opportunity to save more money for savings. Doing this could reduce interest costs overall and open up funds for savings more easily.
3. Use apps to find savings
Many people spend more than they take in, making saving for big goals difficult. However, there are apps available that can assist.
These apps analyze your income and expenses to identify areas for potential savings, and offer advice and tricks to help you save more money.
Unsplurge is an app with a community element and visualizations to motivate users, while Toshl enables automating your savings while creating budget categories for recurring spending.
Qapital offers another solution with its algorithm-powered savings plan that uses spending and saving patterns to move money automatically between checking and savings accounts. It costs $5 monthly with goal setting capabilities included as part of this service; they even provide a free trial!
4. Cut out restaurant meals
Eating out can be one of the biggest budget drains, from dining at fine restaurants to quick ramen shops on every corner. While dining out can be fun and social, too much eating out could quickly eat into savings goals both short-term and long-term.
Even though enjoying restaurant meals from time to time is perfectly fine, try restricting them to special events and date nights for maximum savings and enjoyment. When dining out be sure to omit desserts and alcoholic beverages to help keep spending under control and encourage yourself by joining a no eating out challenge with someone!
5. Give yourself time to think
Rewriting your budget involves looking at the big picture and finding ways to save. That might involve reviewing subscriptions or bills that cost more than necessary, as well as looking into expenses such as fitness classes, dining out and shopping that don't need to be covered in your monthly expenses.
As part of your long-term planning strategy, take an objective view and identify any financial milestones you'd like to meet - such as buying a home or retiring comfortably - which could require saving for. Setting both short- and long-term goals can help focus your savings efforts toward meeting them faster.
