It’s time to celebrate America Saves Week 2013! This year, celebrate in style by following the steps of the Saves Week theme: Set a goal. Make a plan. Save automatically.
This is more than just a theme – it is a recipe for success, because these steps can help you reach your goals. Making good financial decisions has to be conscious – most people don’t wake up one day with a sudden ability to make a beautiful budget or perfectly plan for the future. However, with the right tools, anyone can become financially savvy.
Set a Goal
What are you saving for? A rainy day emergency fund? A car? Education for yourself or the kids? That dream vacation? Whatever your goal is, the first step is to choose wisely. Your savings goal isn’t wild and wishful thinking – it’s that thing that wakes you up at night, or that you find yourself thinking about during the day. What can you do with money that you really care about? Once you’ve picked your most longed for goal, write it down. Be very specific, put down how much you need altogether and how much you’ll save each week or month to make it happen. Not realistic? Rework your plan until you come up with a regular amount to save that you can accomplish.
Make a Plan
Budgeting can be like dieting – we start out with the best intentions, only to get off track somewhere down the line. Now that you have your almighty savings goal, you have the motivation to figure out how to rework your spending so you can accomplish it. Is that goal worth reorganizing for? Is it worth paying down debt or reducing expenses? If not, pick another goal! Only you can figure out how to manage your expenses and your income so that you can reach your goal. Be sure to include your family in your plan too. In fact, the best goals and the best plans come from working together.
Save Automatically
Sticking to your plan and continuing to put money aside for your goal can be challenging. One strategy many people find helpful is to put your savings aside first, before you pay bills, go grocery shopping, and find your pockets empty. If you have an account with a bank or credit union, not only is your money safe, but you also have the ability to automatically put money into your savings account whenever you have a paycheck come in. Check into your financial institution to learn about this easy and free service that can help you reach your savings goals. If you don’t already have an account with a bank or credit union, automatically saving can be a great reason to look around for a free account with the best features that meet your needs.
Are you an American Saver? Take the America Saves Pledge (or re-pledge) today to set your savings goal and make a plan to save. You can also get daily tips for saving money on Twitter (@MoneyMattersOH) or on Facebook (America Saves or Greater Cincinnati Saves).
Written by Betsy DeMatteo, Family and Consumer Science Educator for Ohio State University Extension.
