At some point, everyone is in a position where they need to save up for something that at first seems a little daunting. Maybe it’s a new car, saving up for a down payment on a home or just putting away funds for a dream vacation. Whatever you’re saving up towards, the thought of reaching your savings goal is more attainable when you approach it with a game plan. Sitting down to crunch numbers and define a strategy is easier than you think! And the preparation will help set you up for savings success from the get-go.
Create a Realistic Budget
Just as any good project starts with an analysis to make a strategy, your savings plan should start with an inventory on what you have to work with. Start with your income and then list all of the expenses you have on a weekly or monthly basis. This will give you a realistic idea of how much you have available and get a better idea of a time frame. It will also help you identify any possible places where you can boost savings by cutting expenses.
Pay Yourself First
Perhaps nobody has said it better than Warren Buffett, “Do not save what is left after spending, spend what is left after saving.” If you are going to get serious about reaching a savings goal, you are going to have to make setting money aside a priority. When you look at contributions to your savings as periphery, you are more likely to spend more here and there and “make it up” later. This puts you off track and prolongs the time needed to reach your goals. Save first and spend later!
Automate Your Saving
Setting up an automatic transfer from your checking account to your savings account takes much of the thought out of the process. The less you have to physically think about making the commitment to putting the money aside, the easier it will be to save. And, having the money in a separate dedicated account will make you much less likely to spend it on anything unnecessary.
The number one tried and true way to get ahead and set yourself up for success is not to put it off any longer. Following these steps and putting any amount at all aside today puts you that much closer to your goals than waiting until next week or next month to get serious about it.
If you’re ready to get started saving for your goals, Mechanics Cooperative Bank has the tools to get you started in the right direction. From traditional Savings Accounts to Money Market Accounts and Certificates of Deposit, we have a variety of products to fit your short- and long-term savings needs. Check out our website to learn more about the products we offer and contact us today to open an account!