In today’s economic landscape, the importance of building your savings isn’t just financially prudent, but also necessary. Each dollar you save can help pave the way for achieving your future financial goals. But navigating these savings goals can be a little daunting, especially if you aren’t sure where to begin. To help prioritize and manage your finances effectively, it’s important to identify which savings goals are most important. There are many savings goals to choose from, and in today’s blog, we’ll examine five.

Build an emergency fund.
An emergency fund can provide a financial safety net, offering additional peace of mind during unforeseen circumstances that impact your finances—such as a job loss, medical emergency, or unexpected home repairs. The goal is to set aside at least 3-6 months’ worth of living expenses to cover emergency situations. 
Savings tip: Begin building your emergency fund by automatically allocating funds from your check each pay period to a designated savings account and watch as your funds gradually increase!

Pay down debt.
In the journey toward financial wellness, tackling outstanding debt can be a significant obstacle for many. Prioritize paying off high-interest debt to reduce interest payments and free up additional funds for saving and investing. 
Savings tip: Consider the snowball or avalanche methods to tackle outstanding debt. The snowball method focuses on paying off outstanding debt from smallest to largest, while the avalanche method prioritizes debt repayment by highest to lowest interest rate.

Buy a vehicle.
Purchasing a vehicle is a significant financial decision requiring careful consideration. Before you begin shopping, determine your budget. It’s also a good idea to consider your financing options at this point, securing the funds prior to getting behind the wheel for a test drive.
Savings tip: When purchasing a vehicle, be sure to consider other factors such as fuel efficiency, maintenance costs, and insurance premiums to ensure it aligns with your financial goals. 

Purchase a home.
Owning a home can be the most significant financial milestones many people experience in their lifetimes, and it requires diligent saving and planning. Before you prepare for homeownership, however, get a clear view of your financial landscape and consider your financing options. Just like with a vehicle, there are commonly overlooked costs associated with homeownership. Be sure to account for closing costs, property taxes, and homeowner’s insurance when preparing your budget.
Savings tip: When shopping for a new home, take your time in finding the right fit—from neighborhood to mortgage provider—so you can make the most informed decision.

Prepare for retirement.
Solidify your financial future by planning for retirement now. Begin by conducting an in-depth review of your retirement plans and create goals and strategies to help keep you on-track financially as you save. Doing this can help you stick to the plans you've made while remaining realistic about achieving your goals. No matter your life stage, it's always a good time to think about retirement.
Savings tip: Maximize your retirement earnings by taking advantage of your employer-sponsored retirement plan, if available! Many employers match contributions up to a certain percentage, providing free money for your retirement fund.

Saving is an important aspect of financial wellness. That’s why it’s imperative to set clear financial goals, prioritizing needs over wants, while also practicing disciplined saving and spending habits. No matter what sort of financial goal you’re saving for, the most important thing is to make sure it matters and makes most sense to you. Remember, financial success is not defined by the amount of money you earn, but rather how effectively you manage and allocate your resources to achieve your savings goals. Explore the range of savings options available to you on our Savings page.