5 Habits of Successful Savers

Effective financial planning begins with good habits. If you foster these five saving habits, you’ll be on your way to achieving your financial goals!

Look Ahead

When considering your financial future, it’s essential to think long-term. Try to imagine what you will be doing 10 and 20 years from now. Will your savings be enough to achieve your goals? Will you be able to maintain your current lifestyle? If you’re unsure, now is the time to make the necessary changes to achieve your financial goals.

Set Goals

To formulate your financial goals, try keeping the acronym SMART in mind. The letters stand for Specific, Measurable, Attainable, Realistic, and Time-bound. Your financial goals should be clear, achievable, and have a deadline.

Making a budget begins with outlining your recurring, fixed expenses like rent, utilities, and car payments. When estimating your monthly expenses, be sure to account for recent and future rate increases. Next, factor in variable expenses like entertainment, travel, debt reduction, and retirement savings. Finally, add in an emergency fund. This three- to six-month cushion should cover your living expenses during hard-to-anticipate events, like job loss or divorce.

Allocate Funds

Setup accounts for each of your saving goals, including the items listed above. Then pay yourself first! The best way to be consistent about savings is to set up automatic, recurring deposits into each account. Even ten dollars a week will add up to $520 before you know it!

Be Frugal

Live conservatively, make smart choices, and don’t waste money on interest charges or fees. Just because you got a raise doesn’t mean you need a bigger house or new car. Check out these tips for reducing expenses. If you’re considering adding a new income stream, check out these tips for a side hustle!

Summer is all about having fun, but that doesn’t necessarily mean spending a lot of money. Here are some great ways to vacation on a budget. Or get the entire family involved in planning a staycation and exploring your hometown.

Review Regularly 

In these turbulent times, it is important to adapt your goals to changing conditions, from your personal situation to the economy in general. Take time at least once a year to evaluate your expenses to ensure you are focused on the right goals and are saving money wherever possible. Are you utilizing all subscriptions? Are you eligible for discounts via employer programs? Have you spoken to your insurance agent about potential discounts? Taking just a little time to evaluate your status can significantly impact your financial future.

Now you have the tools to embark on a lifetime of successful saving. Good luck!