Jump Start Your Savings

Whether it’s the struggle of delaying immediate rewards for greater benefit in the future, or an unexpected expense, people looking to build a successful savings habit often run up against very real challenges.

To help manage these realities, here are four tips we suggest to jump-start your savings.

To set yourself up for savings success, build a simple budget. Think of it as a road map that tells you exactly where you are in terms of monthly income and expenses, what money is available to save each month, and if you’re on track.

A budget helps you monitor and track your financial progress. The most important part of your budget is updating regularly.

Build it in a format that works best for you – using a smartphone app, spreadsheet, or simple notebook. Keep it in an easy to find spot to track your income, spending, and saving as you go forward.

The SMART acronym provides a strategy for reaching savings goals that are Specific, Measurable, Achievable, Realistic, and anchored within a Time Frame.

As an example, depending on your specific situation, perhaps you can tuck away $20 each week to hit an annual savings goal of $1,000. Measure your progress each week and modify as needed. By keeping it SMART, you will more likely achieve savings goals when bite-sized amounts are saved over a realistic timeframe.

A savings plan should include building an emergency savings fund to handle unexpected expenses and setbacks that can come up suddenly. A general rule of thumb is to set aside three months’ worth of living expenses in your emergency fund. This buys you some time if something were to happen. If that isn’t realistic for your situation, start with what you can. It’s most important to get into the habit of prioritizing your savings and to begin making progress. You don’t have to bite of the whole goal all at once.

The most successful savers automate monthly deposits to make it as painless as possible. Decide how much you can put into savings and set yourself up with an automated transfer. Another good option is to automatically direct deposit a portion of your paycheck into savings every payday. Begin with an amount you can accord to put into savings and look at your big-picture plan to set your savings goals in the long term.