Yahoo Finance 5 Ways To Live Up To Your Savings Goals
Being better at saving money can be difficult. Whether putting a certain amount aside per paycheck or not spending money on unnecessary things, staying consistent can feel futile.
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However, track star and personal finance coach Keturah Orji shared some ways to stay on track with savings goals in a recent podcast interview.
Let’s dive into some ways to bulk up your savings account and hit your savings goals:
Ask Your Friends To Help Hold You Accountable
Friends and family are known to be the best support system someone can have. Reaching out to them and telling them about savings goals can help hold you accountable. “[Say] ‘Can you check in with me every two weeks and see how I’m doing?’ or ‘When we hang out, can we decide to eat at places that are cheaper?'” Orji said. “It’s okay to ask for help.”
Finding a friend with similar goals would be beneficial on both sides.
“That helps to encourage you, push you and stay on track,” Orji said.
Write Your Goals Down
Putting goals in physical writing makes them more permanent. Orji recommends making goals positive and as specific as possible.
“So not like stop spending or like, don’t do this. What is it you want to do?” Orji said. “Talk about what you want to do versus what you don’t want to do.”
After writing down goals, put them in a place so you’ll see them often.
“Some people like to put it on the mirror,” she explained. “Somewhere that you see often that’s going to remind you, why are you doing what you’re doing?”
Look at Your Spending as a Whole
Instead of scrutinizing every little expense, considering your spending habits can lead to more sustainable saving patterns over time. She said this plays into planning ahead and staying organized. “[If] you overspend on eating, it might be because you didn’t go grocery shopping and plan your meals out,” Orji said.
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Thinking about why you spend money on something can help with the focus on saving money. Organizing space and making a mental list of what you have can lead to less spending on unnecessary items. “[If] you’re purchasing an item over and over again, it might be because you own it already,” Orji said, “But you can’t find it and it’s stuck in clutter.”
Automate Savings
Taking the decision-making out of savings goals will make reaching those goals easier. “If every month I make $3,000 and my expenses are usually somewhere around $1,500,” Orji said. “You can decide ‘I’m going to save $700 at the beginning of the month and I can spend the rest.'”
She said saving money immediately when paychecks hit bank accounts makes it easier than waiting until the end of the month to save whatever was left over. This can look like putting money in a 401(k) with an employer match.
“It’s great to take advantage of that free money,” Orji said. Not only is decision-making taken out of the process, but money will be available for the future.
Realize Reaching Savings Goals is Delayed Gratification
Saving a certain amount of money every paycheck might not show up in accounts immediately, but multiply over time. “It’s that ‘I’m going to put in the work today for a great reward later on’,” Orji said. “‘I’m going to invest today so I’ll have millions of dollars later on.'”
Orji recommends building savings in a high-yield savings account instead of a regular savings account. She said many of her clients don’t realize they could be saving so much more. “It’s like ‘Oh, I’m saving all this money…and I’m getting one cent every month,'” Orji said. “There’s online accounts that offer 5% right now.” Setting up a reward system can help with motivation. “Maybe if you have a reward of ‘If I save a thousand dollars this month, I can treat myself to this.”
Ultimately, reaching your savings goals is up to you. You have to be the person who does it. Orji’s tips can make a difference if you struggle with consistency or motivation.
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This article originally appeared on GOBankingRates.com: 5 Ways To Live Up To Your Savings Goals
