Reaching Your Personal Savings Goals
Reaching Your Personal Savings Goals: 4 Tips for Staying Motivated
Building savings can be a difficult challenge, especially when you find yourself looking for ways to stretch your household each month. You are likely not alone; nearly 80 percent of people live from paycheck to paycheck, according to a 2017 report from a major employment company. This can make reaching your saving goals seem impossible, especially when you are raising a family. However, staying motivated to consistently build your savings may be simpler than you think, and there are a few strategies you can use, no matter why you are trying to save money.
1. Keep Your Why in Sight
While saving money might be a responsible action, this may not be enough to keep you motivated once you open a savings account. The gratification of a purchase is usually more satisfying than putting that amount into the bank, so keeping sight of why you are saving can help you reach your goals.
One way to remind yourself of your why is to make a visual list or infographic and pin it up where you see it every day, such as on the fridge or your memo corkboard. Seeing a tangible reminder of why you are saving can inspire you to put away money, even if it is only a few dollars a day.
2. Break Down Your Goals
You might not be feeling motivated about your money-saving plan because the total amount you are aiming for seems far out of reach. However, you can change how you perceive your goal by breaking it down into smaller amounts. For example, if you want to save $1,000 for a down payment on a quality used car and have a year to put money away, you can break that down into either $83 a month or about $12 per week. The more manageable you make your goals, the easier it might be to reach them.
3. Reprioritize Your Spending
You might lose motivation for saving because your budget does not allow for a viable plan and you always find yourself pulling money from your savings account to cover expenses when you overspend. However, you can remedy this by taking a hard look at your expenses and revising your budget. You may be surprised at what you discover, especially when it comes to impulse buying.
It is important that you are honest with yourself when you list where your money goes. Ask yourself where you do most of your impulse spending and how you can change your habits. For example, if you stop off at your local discount store for one item and spend $50 on impulse purchases instead, write down what you plan to buy before you go inside and then purchase only those items. Each time you are successful, note the amount you saved and how doing so monthly could increase what you save.
4. Educate Yourself About Credit and Loans
It can be difficult to save if you have significant debt. However, you can boost your motivation to do so by educating yourself about how credit cards and loans can affect your budget before you choose to use them. For example, if you plan to take out a short-term loan from Speedy Cash, you may want to learn more about Don Gayhardt, the company’s CEO, and how his beliefs and values motivate the manner in which he runs it.
If you use credit cards, review their interest rates and shop around if you plan to open a new card. In many cases, pre-approved cards carry annual fees and a high APR, so it is wise to pay careful attention to these details before committing yourself to a card that may make it difficult for you to save money.
Building a savings account can be challenging, especially when you are already on a tight budget. However, knowing how to stay motivated can help you reach your goals, no matter the amount.