Savings??? How do I build up savings while I’m still working on everything else??? Let’s talk about some little ways to work on the savings account.
Where will the savings come from?
After taking a look at your spending tracking and debt reduction plans, where do you intend to find the money to save? Many experts will tell you to pay yourself first and it truly is an important comment that many people over look. Savings does not always have to be large amounts like a bonus from work. Try setting aside even $10 per paycheck into a savings account and then ignoring it. Some might suggest the envelope method however I prefer not to keep everything in cash (personal preference only).
Some people have taken on a “side hustle” to infuse more cash into their household finances. This is certainly an interesting approach but can work if you can still balance your home and work lives.
What are your savings goals?
What are you saving towards? Are you trying to build a nest egg? Go on vacation? Fund your kids’ or grandkids’ education? Planning for your own retirement? I would recommend building a nest egg first even as you are reducing your debt. Any available funds could be split between debt payoff and savings. Having that cushion of savings does go a long way to reducing financial stress in a household. When the unexpected costs of life rear up, having that savings available makes it quick and easy to address instead of having to add to the credit card balance.
What will keep you motivated?
It can be difficult to stay motivated in regards to savings. There is rarely an immediate payoff to achieving this financial goal, plus it is lifelong. There is no “end”. So how will you stay motivated? I suggest focusing on what you can accomplish – giving your children a debt-free education, enjoying that family cruise, or being able to live comfortably in retirement. Those life goals are much more motivating than simply skipping the morning latte.