We all know that growing your personal savings is important, but how can you make it a true priority?
Not everyone has one particular item or trip they’re saving for, but it’s important to have funds on hand for emergencies or for when you do have a new opportunity or goal arise. We’ve laid out a few helpful hints when it comes to growing your savings account without too much stress or hassle.
Set Realistic Goals
When it comes to setting financial goals, you always want to ensure they’re S.M.A.R.T: specific, measurable, achievable, realistic, and time-bound. These parameters will help you figure out an end goal, and from there figure out a way to break it down. Most financial experts say to have enough money to cover approximately 3-6 months of essential expenses. This is a great place to start when deciding what your personal savings goal might be.
It’s important to treat yourself like you would treat any other bill you have to pay. We suggest setting up a recurring draft from your paycheck or your checking account. This will help you prioritize savings above discretionary spending without having to think twice.
Reallocating Paid-Off Debt
If you’ve paid off a debt such as student loans, car payment, or mortgage, first, congrats! Secondly, since you have become accustomed to that monthly payment being drafted from checking, why not reallocate it to savings? This will allow you to stick to your original budget while still seeing your savings grow.
Stick to your Budget
It always feels good at the end of the month and you know you’re on target for your budget. What feels even better is when you have a little money left over. Put that into savings! It may not seem like much, but when you put a little extra in your savings month-to-month, you’ll reach your goal faster than you expected.