Setting money aside for savings can be a challenge, especially if you aren’t sure where to begin. But savings is also a lifelong skill that should be constantly evaluated and improved. Whether you are saving for a car, college, home, or building a nest egg or emergency fund, the five following tips may be helpful in setting and achieving your savings goals.

Set a specific goal
First things first, you’ll need to determine exactly what you’ll be saving for. If updating your current vehicle is a priority, perhaps your goal is saving up to cover a new monthly payment. Or maybe you are trying to save a down payment for a home. If you don’t have a large purchase goal coming up, consider building an emergency fund. Whatever goal you set, it’s important to remember that it should be specific, time-bound, and reasonably achievable.
Bonus Tip: After determining your goal(s), use our handy Savings Goal Calculator to assess how long it will take to reach your goal.

Create a savings timeline
Okay, so you have a specific savings goal—what’s next? You’ll want to determine how long it will take you to accomplish your goal by creating a savings timeline. Some goals require more planning than others, so this timeline can be as simple or detailed as you need. Taking the time to create a savings timeline is the important part, as it will not only help in holding you accountable, but it will also help you stay focused.
Bonus Tip: For more complex savings goals, such as saving for retirement or purchasing a home, consider setting benchmarks and deadlines for those benchmarks. Example: Save $15,000 for a home down payment within 3 years.

Create mini goals to stay motivated
Your goals are clearly defined and you have a timeline to help you stay on track. Now is the time to utilize your timeline to create mini goals that can keep you more motivated in your savings journey. Like your timeline, these mini goals are customizable depending on your needs. For example, if your overarching savings goal is a $15,000 home down payment within three years, you could implement 36 monthly mini goals and plan to save about $416 each month. These mini goals serve as a tool to make saving less intimidating for you, and to better keep you on track.
Bonus Tip: Look for engaging ways to make saving less intimidating. If your mini goals are still too daunting when broken down by month, consider a weekly savings goal instead.

Determine the best savings account
Now that you have clearly defined goals, as well as a timeline and plan to help reach them, it’s time to figure out where you’ll be saving the funds. If your savings goals are long-term and large, such a down payment for a home, then a Money Market account may be a viable option. These account usually pay a higher rate than traditional savings accounts, but usually also carry withdrawal limits and a minimum balance in order to earn dividends. If you are looking toward the future, and thinking about saving for retirement, then you may want to consider an Individual Retirement Account (IRA). These accounts can be a good way to prepare for retirement, and DCCU offers both Traditional and Roth IRA options. If your goal requires an account that allows you immediate access to your funds when needed an emergency fund for example, then a Club account or traditional Savings Account may be a better fit. No matter which savings vehicle you prefer, it is important to examine which will best suit your needs.
Bonus Tip: Regardless of the type of savings account, consider setting up recurring, automatic withdrawals to automate your savings and help you reach your goals more quickly.

Track your progress
As you prepare to accomplish your savings goals, don’t forget to track your progress along the way! By doing so, you’ll be able to determine what is working, what isn’t, and what could be more effective. As you continue this process of tracking and evaluating your progress, it will help grow your savings skills. Remember that like most facets of your financial health, saving is a lifelong skill, and one that must be developed, revised, and enhanced over time. Remain persistent and determined, and you’ll be ready to conquer your savings goals in no time.
Bonus Tip: Be sure to reward yourself for reaching your predetermined savings goals.

Because maintaining financial wellness is an ongoing process, it’s important to remember that even the savviest savers experience savings challenges from time to time. Whether your savings goals are small, lofty, or somewhere in between, these five tips can help you reach them. As always, our team of dedicated financial professionals are eager to help you reach your financial goals. Contact us today at 540-946-3200, or stop by one of our convenient locations!

This article is for general information only and not intended to provide specific advice or recommendations for any individual.