Most of us wish we had more money in our savings accounts. Having additional money beyond what we need to cover our bills can make unexpected financial situations less stressful. Whether you have a big or small savings goal for 2023, now is the time to prepare. The following tips may help you make your savings goals a reality.
1. Make a plan now
It’s a good idea to outline specific goals. Figure out how much money you want to save so you can determine what steps you need to take to get there. If you don’t plan, you may get sidetracked and not follow through. Creating an actionable plan before Jan. 1 is the best way to set yourself up for success.
2. Learn to budget
Now is an excellent time to start budgeting to make your goals happen. By setting and following a budget, you can put every dollar you make to good use and find ways to trim unnecessary spending. If you’re a budgeting newbie, budgeting apps are a great resource. Budgeting could give you more money to put toward your savings goals.
3. Don’t set yourself up for failure
Make sure you’re realistic with the specific savings goal you have in mind. If you only have so much income to work with and have no plans to get a side hustle or find a better-paying job in the new year, don’t set an unrealistic goal that is unreachable.
It’s also good practice not to deprive yourself. Do stick to your plan and follow a budget, but make sure you have some fun. You work hard and deserve to spend some money on yourself.
It may be helpful to set savings milestones. When you reach a milestone along the way, you can treat yourself to something fun as a reward — which may serve as a way to stay motivated.
4. Use automation tools to your advantage
When life gets busy, it can be easy to forget to save — even if you’re committed to your savings goals. Many people create a plan but fail to do the work. One way to ensure you follow through with your goals is to automate the savings process.
You can set up automated transfers through your bank to automatically send money from your checking account to your savings account. Once you do this, there’s no forgetting to save. Let’s imagine you want to save $7,500 next year. You can schedule automated transfers of $625 on the first day of each month. At the end of 2023, you’ll have met your goal.
5. Get an accountability buddy
It can be easier to make big goals happen when you have support. If you share finances with a partner, it can be beneficial to ensure you’re both on the same page. You can motivate each other to follow through with your savings goals.
If you’re on a solo personal finance journey, it may be helpful to share some of your goals with a trusted family member or friend so they can cheer you on. Surrounding yourself with others who are also working toward financial goals can help you stay on track.
You can do it
You can reach your savings goals. If you encounter some obstacles along the way, that’s okay. Don’t put off your savings goals because it feels impossible. Instead, get creative and figure out a plan that works well for your situation. The above tips may help you have greater success on your savings journey.
