4 Steps to a New Savings Goal in 2018
Setting clear financial goals can motivate you to succeed in your savings. Make 2018 your best savings year yet!
Here are 4 simple steps to help make your savings goal a reality in the New Year:
Step 1: Set a realistic savings goal.
Setting a realistic savings goal, with an exact dollar amount, can help you form an easy-to-keep budget. By doing this, you can create a savings plan to make sure you succeed in your savings. For an example, if by the end of the year you want to have save $5,000, you would have to save approximately $420 each month. Make sure you pick a goal that fits in your budget.
Step 2: Map your goal.
Make sure to map out your savings goal. Ask yourself important questions such as: Is this a long term or short term goal? Do you want to create an emergency fund? Are you trying to double your savings? Are you starting a retirement fund? Having an important reason behind your savings goal can make it easier to save and will help you choose the best type of savings account to achieve your goal—whether it’s a regular savings account, CD, IRA, money market, or stock investment account.
Step 3: Pick the right kind of savings account.
There are so many different saving options that financial institutions can offer you. There’s money market accounts, Individual Retirement Accounts (IRA), Holiday Savings, Health Savings Account (HSA), CDs, and even age specific accounts. Picking the right savings account that’s relevant to your goal can help you accomplish your savings a little easier.
Pro tip: If you are unsure of which account to use, talk to a Personal Service Counselor at your local credit union. He/she can help guide you into the right direction!
Step 4: Assess your progress.
As you begin to make progress towards your goal, it’s important to evaluate the progress and results. Is what you’re doing is the right way to save for your budget? If it’s not, don’t be afraid to change it. It’s okay to make adjustments to your situation as long as it’s benefiting your goal.
No matter what your goal is, there is always a way to reach it. Do you have a savings goal for 2018? We’d love to hear what it is in the comments!