How To Achieve Your Savings Goals This Year

Monday, January 10, 2022


 When I ask most people what one of their main financial goals is year after year, they say something along the lines of achieving their savings goals.  This is a great goal because it actually helps a lot of aspects of your finances.  Having money in your savings can help you avoid using credit cards for emergencies, it can help you cut back expenses each month so you have more in savings, and it can help you budget for long term expenses by saving for them.  So if building up your savings is one of your financial goals this year, you're in luck because I'm here to give you some tips on how to achieve that goal.

1. Decide what you are saving for. 
Whether it's a general savings fund or saving money for an upcoming large purchase like a new car, make sure you make a list of what it is you are saving for.  This helps you keep the end goal in mind.  It also doesn't hurt to come up with a specific amount as your goal.  Sometimes it's easier for me to resist the urge to purchase something and instead save that money, if I know it's helping me get to a specific goal amount. Be clear with yourself about your goals!
2. Put any bonus money towards your goal.
Bonus money can be a one time gift amount from a relative for the holidays, a tax return, or any money you make working overtime at your job.  The reason this is great when it comes to achieving a savings goal is that rather than just $20 here and there, these amounts are usually a bit more than that and it can feel really good to dump it into your savings fun and watch the amount grow. 
3. Update your budget to allow for money to go towards this goal each month. 
This means you may have to reduce expenses in certain categories, or you may just need to take whatever is left over in your budget at the end of the month and dump that towards your goal.  It's always a good idea to have a savings category in your budget where you have a certain amount you commit to setting aside.  

4. Sell things you don't need.
This is a double win because it can help get your home in order as well.  Go through your home room by room, and set aside things you no longer want or need.  You can have a yard sale, sell them online, or whatever method works best for you.  I do this once a year, as a sweep through my home where I put things I can part with in a box and then see what I can make off of them.  Be reasonable with your pricing.  Anything is better than not selling it at all. 

5. Stay focused.
It's easy to get discouraged when unexpected things come up along the way that require you to direct money to them, but don't give up! Stay on track by not adding to any debt by using credit cards (this is why you have money set aside in savings).  You may have to change your lifestyle for a bit to achieve this goal but remember it's not forever.  Of course, you may end up like me.  I used to go to a store, and then spend time before I went to check out trying to decide what I can put back.  Now I go to a store, and it takes a lot to convince myself to actually purchase something. If it's not worth my money, I won't get it.
Are you working on building your savings this year?  How is it going?

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