25% of Americans state that saving money in 2019 is their main aim. One quarter are hoping to boost their emergency fund, 22% are preparing for retirement, and 21% are hoping to save enough for a vacation, according to a Prodege survey. However, despite their good intentions, experts say that just 8% of people manage to stick to their resolutions throughout the year. But, by following these top tips, you’ll develop better money habits and stay on track with your savings.
Setting yourself a clear goal is the key to saving success. Without a specific figure in mind, it’s impossible to measure your success. If it’s a vacation you long for, research prices and determine how much cash you’ll need for your break. This can be done for any big financial event which you need to save for, such as a wedding, house deposit, or home renovation project. Once you’ve got a precise figure, you can make changes to your lifestyle and spending habits. 43% of U.S. households subscribe to more than one TV subscription service, so consider ditching one of these, or commit to making your own pizzas rather than buying a takeout.
Americans have multiple costly expenses to save up for. The 2018 American Wedding Study, revealed that the average U.S wedding costs couples $44,105. Meanwhile, the average vacation will set you back $1,145 per person. But rather than be taken aback by these figures, break it down into smaller, more achievable amounts. Aim to save 10% of your total goal to start with. When you achieve this, you’ll feel motivated to save some more and you can then set yourself the target of a further 10-15% and so on. Should you end up requiring cash sooner than you’d planned, consider increasing your cash flow by borrowing cash. This could be from a reputable lender or from loved ones. And, when the time comes, you can use the same savings hypothesis to pay the funds back.
Share your resolution with others
When you’ve decided how much you’re going to save and how you’re going to do it, voice it to a handful of your most trusted family and friends. Your loved ones will want to see you succeed and will be a pillar of support in helping you meet your savings target. It will also help them understand why you decline costly nights out with them. Similarly, consider using online forums and support groups where you can share your goals, thoughts, feelings, and any stumbling blocks with others in the same situation.
Americans are keen to boost their savings pot this year. So, to ensure you stay on track of your financial plans, it’s best to set goals, share your resolutions with others, and create achievable mini milestones.