A new year often brings new resolutions that we often cannot accurately plan for. Losing weight, changing a behavior, traveling more, eliminating debt, and saving more are just some of the most popular resolves people make at the dawn of a new year. Although these are fantastic goals, most people do not actually have a concrete plan to achieving their resolutions. So how do we get over this hurdle? How do we accomplish what we set out for ourselves on January 1st?
As I wrote this post, I thought to myself of the promises I made to myself in the new year. Among some of the promises, I promised myself I would save more money. When a really thought about an actionable plan to accomplish this goal, I found there were endless possibilities for me. Depending on your situation and how much you want to save your plan may look different but if you have saving more in 2018, feel free to use these points as good guidelines to follow when creating your plan.
Determine Saving Amount
You can’t really consistently hit a target you don’t know is there. The same rule applies to this goal. Knowing exactly how much you want to save in a year’s time can give you insights on how aggressive you may need to make your savings plan in order to accomplish your goal.
Break down huge amounts into smaller chunks
Saying to yourself I want to save $10k may sound really daunting but when you break that amount into smaller pieces it makes it more manageable. This methodology allows you think of smaller goals rather a huge overall goal. If you wanted to save $10k a year, we can break this down to a daily goal of savings $29.
Use Tech to your advantage
Nowadays technology makes our lives very easy to accomplish goals. You can easily set up an account within the array of personal finance apps that allow you to set rules on ways to save your money. I actually set up an account with a saving app that automatically saves a certain amount of money whenever I step foot in the gym. This makes accomplishing 2 goals in one extremely easy.
Like most goals, you have to have self-discipline in order to accomplish your goals. If you want to save money for a down payment on a house or just to have a nice rainy-day fund, you cannot deviate from the plan. Set a budget, pay yourself first, and minimize expenses in order to maximize your savings rate.