Set Savings Goals

Get on track money-wise by setting some savings goals. Here are some tips to get you started:

1. Start a budget. Set a goal to create a workable household budget with the end in mind to bring in more than you spend and then save it. Use apps, spreadsheets, or plain pen-to-paper, but be sure to create line items for your savings goals and allocate funds for those areas.
2. Create an emergency fund. Set a goal to establish a particular savings amount to have on hand for emergencies. The general rule of thumb among financial experts is to save three times your salary for emergencies. Remember, this fund is only for unplanned expenses.
3. Create a short-term savings fund. Planning a vacation or a home renovation project? Need to budget for Christmas shopping? Don’t put those expenses on credit cards. Start a savings fund for short-term spending plans or projects so you can afford them.
4. Create a long-term savings fund. Plan for the far-off future by putting a sum of money into an interest-bearing account and not touching it. You could use a windfall for this purpose, such as a tax refund or a bonus from work. Automating small contributions to this account straight from your paycheck that you barely notice in the day-to-day can pay off significantly once you’re ready to use these savings.

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