If you listened to your parents, you know money doesn't grow on trees. But it can grow in the bank. That's why saving should be at the top of your financial to-do list.
Let’s go. Start by looking at your personal stats: how much you make, how much you spend, and how much you currently save. Keep those numbers in mind as you set your goals.
Thinking about all the things you want to do in life IS fun. Saving is how you make those dreams your reality. Want to take a Eurotrip in 2021 – ya know, if international travel is a thing again? See what flights, hotels, and activities usually cost. Trying to buy a home in five years? Research prices in your ideal area to figure out a good down payment goal.
Once you’ve decided what you want, when you want it, and what it’ll cost, do some math to come up with a monthly savings target. You can bump this up over time as you start making more or regularly spending less.
Picking the right account. Ideally you should have a separate one for each goal. Having one big savings pot makes it too easy to use money on the “wrong” thing.
Here are some options:
Set up automatic transfers to take the willpower out of saving. And think about hanging up a photo that represents your goal – a home, beach scene, whatever motivates you – to remind yourself why you’ve decided to save instead of buying more wine. For real...researchers say that helps.
Saving can help you afford the life you want. Saving successfully starts by naming your goals and making a plan to reach them.