Prepping to save
Making an open-ended promise to save money is hard to complete if you don’t set guidelines and specific steps to reach your goal. If you’re serious about stashing more cash, state exactly how much you want to save by a specific date.
Here are some things to get started:
Set a timeline
Timelines help put your goal into focus.
For a short-term goal, like a vacation, you may be able to set an exact date by which to save.
For a long-term goal, set benchmarks along the way to make sure you stay on track.
Find ways to cut monthly expenses
Savings may require some sacrifices. Here are a few tips to cut back your spending, so you can put more money in your pocket.
- Stop buying coffee every day.
- Make your lunch.
- Cut the cable cord.
- Use public transportation or carpool.
Small, daily changes can go a long way at the end of the month and help you achieve your goals. You don’t have to do it all cold turkey. Simply start with one or two, then gradually add more ways to save.
Use a savings tool
For many long-term savings goals, investments and special accounts will help you earn more money. Typically, experts recommend mutual funds for goals over five years.
Don’t give up
As with any other type of goal, you may experience setbacks along the way, such as unexpected expenses, but don’t get discouraged. Adjust your plan and get back on track.