by Heather, December 31, 2013
We used to be a nation of savers. Lately we have become a nation of spenders and many people are struggling to take back control of their finances. With kids in school or even off to college or a few yet in diapers, we know it can be tough to set goals that you can reach and still make a difference in your bank account. We are all for saving and understand that setting goals an keeping those goals are really two different things. So here are a few easy financial goals you can set up for the New Year that you can be comfortable with.
I remember back when I was single. I was working 2 jobs to survive in the expensive area I lived in. But I was still able to set up an automatic withdrawal from my bank into a Christmas Club type of account. I used this type of account because you were not able to access it until it automatically deposited it into your checking account in November. Every week, I had $20 taken out whether I could afford it or not and placed in this account. That added up to $1000 in savings over the course of a year. I then moved that money into a money market account that I would have little access to. As I got used to the small amount being taken out each week, I increased it to $25, which gave me an additional $300 per year.
This is something that you can easily set up, even if you get paid monthly. Sometimes it is hard to have $100 or $200 taken in one chunk out of your check. Break it down into less painful auto withdrawals and save even more than you normally could. Set your financial goal for saving what you want to this coming year and break that into 52 weekly deposits and set up the transfers today.
Maybe your financial goal is to reduce your bills. You can easily use the same concept to gather $100 additional per month and use that to start paying down a large bill. Save $25 per week by transferring it to a separate account. Once you have saved what you need, make an additional payment to the smallest bill you have. Continue to do that each month until it is paid off. Then increase the amount you save and apply it to your next bill. Using this easy method will get your excess bills paid off quickly and with little Pain in your checkbook.
Apply this same concept to any thing you need to save for – The kids college account, a trip you want to take. Whatever you desire. By looking at the smaller picture (small increments of savings) instead of the big picture (how much you need to save or payoff overall), you can make huge inroads with these easy financial goals.
What is your financial goal for the coming year? How are you going to attack it?