4 tips for saving towards your goals
Everyone has different savings goals. Some people want to save for a rainy day, others want to buy a house or a car, and still others are looking to retire as soon as possible. No matter what your savings goals may be, there are some tried and true methods for reaching them. Here are 4 tips for saving towards your goals.
1. Set aside money each month
One of the best ways to reach your savings goals is to set aside money each month specifically for those goals. This could mean setting up a separate savings account or earmarking a certain amount of money from each paycheck. The key is to make sure that the money you’re setting aside is easily accessible so that you can withdraw it when you need it.
Tim’s Tips: One of the best ways to set aside money each month is to automate your savings. By setting up an automatic transfer each month – or even better, on a payday – you won’t notice the deduction, and won’t need to remember to do it manually. Even if it’s $25 per month, over time it adds up.
2. Invest in yourself
Another great way to save towards your goals is to invest in yourself. This could mean taking courses or classes related to your goal, such as investing courses if you’re trying to save for retirement. It could also mean attending seminars or workshops related to your goal. By investing in yourself, you’ll not only be more likely to reach your goal, but you’ll also have a better understanding of how to manage your finances once you do reach it.
3. Make a budget and stick to it
Making a budget is one of the most important things you can do when trying to save towards your goals. A budget will help you track your spending and make sure that you’re not overspending on unnecessary things. It’s also important to make sure that you stick to your budget once you’ve created it. This can be difficult, but it’s important to resist the urge to splurge on things that aren’t essential.
Tim’s Tips: Use the 50/30/20 formula. Dedicate 50% of your income to your needs (Rent/Mortgage, Car, Utilities, Groeries), 30% to your wants (Streaming services, Shopping), and 20% to Savings or Debt (Emergency Fund, Retirement, Credit Card Payments, Education). It’s not only a great formula for budgeting, but a simple way to track your spending!
4. Live below your means
One of the best pieces of advice for saving towards your goals is to live below your means. This means spending less than you earn and making sure that your lifestyle doesn’t exceed your income level. It can be difficult to do this, but it’s important to remember that living below your means doesn’t mean living a life of deprivation—it just means being mindful of your spending and making sure that your lifestyle is sustainable in the long-term.
Saving towards your goals can be difficult, but it’s definitely possible with some planning and discipline. By following these 4 tips, you’ll be well on your way to reaching whatever savings goal you’ve set for yourself—whether it’s buying a house, retiring early, or anything else!
Most importantly, once you have savings, make sure you’re making it work for you! Sitting in a savings account means your money is worth less tomorrow than it is today. Contact us, and we’ll show you how to put your money to work!