UAEX Money
5 Easy Steps to Reach Savings Goals
Many of us have money at the ready to cover emergencies, never mind the money for the larger purchases we’d like to make. This is why it’s that important to prioritize savings to cover both the items you need as well as those you want.
Many of us have money at the ready to cover emergencies, never mind the money for the larger purchases we’d like to make. This is why it’s that important to prioritize savings to cover both the items you need as well as those you want.
Whether you’re saving for a car, the security deposit for an apartment, a down payment on house, or a dream vacation; a little planning and an easy-to-maintain budget will be instrumental in making your big dream a reality.
- Set Your Goal. It’s easy to keep dreaming of the things you want or even things you might need but making it a point to establish your big dream as an actual savings goal is a necessary first step in making the goal a reality.
- Do Your Research. Start with the most important question: how much is your large purchase going to cost? Decide what item and features you want. Shop around and compare prices to get an idea of how much you will need to save. Some items may come with associated costs. For example, if you are planning to purchase a car; you will also need to buy insurance.
- Make a Plan. Next, look at your income and expenses to determine how much you’ll be able to save each week, month, or pay period. Designate a safe place to put the money.
- Automate Your Savings. Have money deposited directly from your paycheck or transferred from your checking account to a savings account. Keep your savings in a separate savings account to watch your savings grow with interest. You will be less tempted to spend it if it is in a separate account.
- Set aside windfall income. Think through the year to determine if you will have any “windfall” income. Receiving tax refund? Have extra income from gifts or a side gig? Year-end bonus at work? Since those funds aren’t a part of your established budget, you won’t miss the additional income by moving a portion of it into savings – plus, you’ll cut the time it takes to reach your goal!