Please note, this post has been sponsored by MyMazuma.com. All opinions expressed are my own. Thank you.
Its hard to believe that we are in the midst of the second quarter of the year. But despite the turning pages of the calendar, there’s still plenty of time to how to for us all to save money on the biggest expenses in your budget and increase our overall savings at home.
While most people want to improve their personal finances, but don’t know how to achieve their goals. Especially during the wanderlust of the Spring. A time when it’s easy to get sidetracked all the beautiful things one can buy for their homes during the warmer seasons of the year.
For me, the key to making a meaningful financial improvement each season is to focus on the process and the things I can control.
Here are some steps anyone can easily take to improve their financial well-being in 2018.
1. Increase Your Savings Goal
When it comes to savings, bigger is always better. Whether you’re saving for your first home or for retirement, you can never have too much in your savings account. But funding those accounts can be tricky which is why increasing your savings rate can not only improve your financial health but give you more money to funnel toward your overall savings goals.
There are several ways to accomplish this goal. First, you need to know exactly how much you were able to save last year. Then you will need to create a workable savings goal higher than your previous year’s savings.
Second, you need to determine how you will be able to fund your account. Starting with work-related contributions. If you aren’t contributing the maximum amount to your company-sponsored retirement plan, such as a 401(k), then simply increase your percentage contribution to the plan.
If you are already maxing out your company-sponsored retirement plan, consider starting an IRA, Roth, taxable savings account, or investment account.
Additionally, you may be able to fund your savings goals by adjusting your withholdings from your paychecks at work, using a tax return, cashing in your initial emergency fund should you have more long-term savings account to date, or Spring cleaning your home and liquidating unused household items into cash savings.
No matter how you fund your goals, seek out several means to fund your overall savings goals. Preventing the age-old dilemma of placing all your eggs in one proverbial savings basket.
2. Regularly Track Your Spending
Once you have a small, obtainable savings goal in mind you then need to figure out ways to track your spending habits to help you meet your savings goals moving forward. With the easiest way to track your ongoing spending is to link online sites or apps such as EveryDollar or Mint.
Free services that allow you to track your spending on credit cards, bank accounts, and to have a visual reminder of your savings goals and slush funds each season as well.
Then after tracking your spending on your platform of choice for a season’s time, you will have enough data to determine your typical spending habits.
Understanding your spending habits will make it easier for you to plan for future financial goals. Including planning for retirement, saving for your children’s college funds, or making lifestyle changes such as transitioning to working from home or relocating your family.
Then, once you have tracked your spending habits you can create a working spending plan and, of course, reevaluate your savings goals accordingly.
3. Automate Your Bills, Utilities, and Donations
One of the greatest financial decisions I’ve ever made was to put my finances on autopilot. Because putting your savings, bills, and investment accounts on autopilot can greatly simplify your bill paying and exponentially increase your overall savings goals.
Starting with your checking and savings accounts. Have your workplace payroll department direct deposit a portion of each paycheck directly to your accounts. Making sure to put extra funding into your investment accounts.
If you are free of all high-interest consumer debt also direct deposit funds into separate savings account to fund yourself. Afterall, if you’re not paying yourself, what’s it all for?
Next, focus on your bills. I challenge you to find a bill that can’t be paid automatically. Everything can be paid online in an automated fashion. Including credit cards, mortgages, utilities, memberships, tuition payments, union dues, subscriptions, charitable donations, and even tithing.
Once you have your savings and bills on autopilot, you’ll need to set up automatic investing. By making your investment deposits automated, you commit to reaching your goals in an easy, practical way. You’ll also be able to avoid the trap of trying to self-track the market each season.
4. Post your financial goals
One of the best ways of seeing your financial goals come to fruition is to publically set clean, obtainable goals.
For me as a blogger and YouTuber, I like to post about my goals for the year as well as to record update videos. For some, this might be having weekly meetings with your spouse or partner to discuss your financial future.
For others simply writing down your goals and sticking them on the fridge, pin board, or in your bullet journal can help to give you the accountability you need to make your financial goals come to life.
No matter how you post your goals, first things first: You have to start by writing down your financial goals.
And no, stating you want to be rich or successful as a start-up doesn’t count. You need accurate, obtainable goals. Such as, in 2018 I want to save $10,000.00. I’ll fund this goal by taking on overtime hours at work as I am able to do so, selling my second vehicle, and by skipping buying out lunches or coffee at work. Now, that’s a specific, well-formulated financial goal!
Financial goals need to focus on 3 key terms: Time, funding, and accessibility. Without these 3 factors, it likely won’t stick! Which is why writing down a goal with an estimated date and expected cost dramatically increases your likelihood of success and helps you understand the which financial steps are most important to you and your family.
If you are stuck on creating your ongoing financial goals, match it against these questions:
- Why is this goal important to me?
- How much have I already saved?
- How much can I set aside each month to fund this goal?
Answering each of these questions will give you a clear plan of action to tackle your goals. Because no matter your money goals, posting your goals will help you gain and maintain your financial footing for the remainder of 2018.
5. Reassess Your Budget
If you’re looking to increase your overall savings this year, you’ll need far more than simply cutting out lattes and lunch. Because according to the Bureau of Labor Statistics,
Americans spend almost 70% of their money on housing, groceries, and transportation.
Which makes reassessing your budget each season a true necessity. Making sure to redline your budget, looking for splurges disguised as essential spending. Expenditures that are more fluff than factual. Items that may be cutting into your savings goals at home.
The bigger the budget or a slush fund, the more time you should spend there evaluating your progress. Because chances are you’ll be able to locate found money that can help you fund your short and long-term savings goals.
Listen, you should be able to enjoy a latte every now and again. Afterall, treating yourself may very well be part of your self-care plan and can even be tied to emotions and experiences of your youth.
By making a concerted effort in cutting your big expenses, such as your housing and transportation budgets, can help you create working funds that will allow you to meet your savings goals and fund those delicious lattes you’ve been craving. And that’s something worth getting out of bed for!
6. Meal Planning
Meal planning for me is a way of life. And its something that has saved my family thousands of dollars each year. In fact, I have a meal planning mantra which is as follows: From the plan to the pan.
Without fail, I meal plan each week. I also know myself and it’s hard for me to limit dining out one meal each week. Because the more I dine out and get accustomed to all those carb-heavy favorites the more I crave them.
Instead, I try to make meal planning at home fun. I love theme nights. Small meals that can become occasions including Meatless Mondays, Taco Tuesdays, Wild Rice Wednesday (dishes that are served with rice, Thai Thursdays, Fruity Fridays (foods with a citrus twist), Salad Saturdays, and Serve-Yourself Sundays.
I also find that meal planning helps me curve impulse buying in-store. To curb excessive grocery spending I plan my meals first by accessing my food budget (which is $65.00/week for our family of 3). I then check to see what pantry staples, deep freezer finds, and produce I have on-hand and using those finds base my weekly meals.
Meal planning has also allowed me to cut my food budget by 2/3 and to still eat healthy, organic, plant-based meals every day of the week. Last year alone, meal planning saved my family over $3,500.00. Funds that were used to fund ongoing savings goals at home.
7. I educate myself on financial matters weekly
Like with seasons, financial climates frequently change. As do my own personal money-related questions. With my financial literacy needs changing throughout my lifetime.
For example, in my 20’s I needed to know things like: What’s a good credit score? How do car loans work? Have I saved enough for retirement? In my early 30’s I’ve needed to know about rates for mortgages and how to invest for retirement?
While my age and financial needs have changed, what doesn’t change is the need for clear, trustworthy resources to help answer those questions. Because the difference between knowing what to do and not to do, in terms of financial literacy, can equal up to a whole lot of money!
I set aside one hour per week to up my financial literacy game. Time blocking a portion of my week to reading online resources that help keep my savings goals focused. With my go-to site for learning about financial matters being MyMazuma.com. A site that helps consumers, moms and frugal savvy gals like myself understand money matters and make better financial decisions.
By providing financial education opportunities from trusted fiscal advisors, viewers are given an easy-to-navigate, one-stop-shop for all your financial literacy needs. Readers will find resources that are not only relevant to their level of money knowledge but to the decisions, they make every day.
Using 3 stages of financial education, financial literacy, fluency, and mastery, consumers are given a well-rounded means to achieving the financial education you seek at home. I cannot say enough great things about the site and I encourage you to check out MyMazuma. I’m sure it will become your favorite online resource for Financial Education too!
So, friends, those are my 7 favorite tips to help you increase your savings in 2018. Suggestions that will help you take your savings goals to the next level! Now I want to ask, do you currently have any new savings goals in mind? Or do you currently use any financial literacy services to help you meet those savings goals? Share your goal-setting strategies below!
