Oct 27, 2021 / Money Tips
Who says saving money can’t be fun? When you plan to save for some future expense (especially if that future expense is something fun), saving money can become a game unto itself. Whether you’re saving for a down payment on a home, a family vacation, holiday expenses, a big event, or any other major purchase, follow these tips to stay motivated and meet your money saving goals.
When is your next big purchase? If you know, you can make a plan to save money over time until you’ve reached your larger goal. Sometimes those dates are set in stone (a wedding, a family vacation) and sometimes they need no additional motivation (your in-laws’ basement was a fun experiment while it lasted). But if you haven’t already, set an end date and do the math to figure out how much you need to save every month or every pay period. Breaking larger amounts down into smaller, more attainable goals can help you stay on track with your savings.
Saving money for some future event can be easy to procrastinate. It’s far enough down the road, you can always find time to save some other day, right? If you really want to meet your savings goals, there’s no time like the present to start saving. And, there’s no better time to set aside that savings than the start of every payday. It’s understandable to prioritize paying debts, bills, and other obligations first. But before you buy anything else, remove your pre-calculated savings amount from every paycheck and put it in a dedicated savings account (more on that later). You might even consider an automatic direct deposit. That way, you’re not tempted to dip into your savings or treat it like your other money.
One of the nice things about saving up for big purchases is that you can use that extra time to your advantage. After all, why should you have to do all the saving, when your money can work for you? Putting your money into a money market account will earn more interest than a traditional savings account and help you separate your savings from your everyday spending money. Look around, compare rates, and find a money market account that can help you save up for your next major purchase.
Saving money for something big probably means you’re going to have to cut costs somewhere else. If you haven’t already, build a budget that restricts your spending. Categorize each of your purchases and set a spending cap on entertainment, food, transportation, housing, etc. Separate the needs from the wants and find ways to cut back on expenses that don’t contribute to your savings goals or the necessities of life. By building and living by a budget, you might find that you have extra money at the end of each month that you can put into savings, above and beyond what you had originally planned to save.
Saving money doesn’t have to be a burden. Keep your eye on the end prize and keep working toward your goals. Before long, you’ll see your savings accumulate and eventually you’ll reap the rewards of your savings efforts. If you’d like to learn more about the best savings plan for you, talk to one of our financial experts or visit a Utah First branch near you.