The hardest part of any savings plan is finding a way to stay disciplined. When you first set new savings goals, you’re excited about your new plan. You diligently put money into your savings each week and get ready to watch it grow. Over time, though, it’s harder to stay disciplined.
If you find yourself struggling with sticking to a savings plan, here are a few ways you can help yourself stay focused:
Use direct deposit. So many employers offer this easy alternative to cashing a weekly paycheck. In some cases, you may even get access to your money faster by signing up for direct deposit. You can choose to have a percentage or flat amount of each check go directly to your savings account to minimize the temptation to spend more than you should.
Set up an auto transfer. If direct deposit isn’t an option for you, setting up an automatic transfer to your savings account is the next best thing. You can determine a regular amount to be transferred out of your checking account into your savings account automatically at an interval that works for you. You won’t be tempted to spend that savings because you know that it’s already being moved out of your account.
Make regular deposits yourself. Some people still prefer to get a “real” paycheck each week and to do their banking in person. If that sounds like you, you can still make contributing to your savings automatic. As you fill out that deposit slip each week, just be sure to grab another one for your savings account. You can split your paycheck into both accounts yourself as you deposit.
Have a clear goal. Many people who get stalled out in their savings plan don’t have a definition of what they’re saving for. If you’re saving money each week because you know you’re supposed to, you can be easily swayed into thinking that something else is more important than making that savings contribution. On the other hand, if you know you’re saving to pay for something defined like a vacation or even an emergency fund, you’ll find it easier to stay committed to savings.
Celebrate your victories. If you’ve been sacrificing for months to save enough money to fund your emergency fund, be sure to reward yourself when you reach your goal. Go out to eat somewhere nice or treat yourself to a new DVD. Do whatever is meaningful to you. After you’ve celebrated, you’ll feel more prepared to move on to your next goal.
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