Believe it or not, 2021 is coming to a close. That means it’s time to think about your end-of-the-year savings goals. Are you going to reach them all? None of them? Some of them? Here’s some tips for getting things back on track to hit those goals.
If you’re like many people, the pandemic threw a wrench into your savings plans. First, in 2020, there was the need to just financially survive. Now, in 2021, there’s a feeling of things approaching “normal,” but it’s still not quite there. Take some time to review your financial priorities to make sure they’re more aligned with your savings goals. Perhaps your budget needs a revamp. Maybe you need to rethink your investments. Think through everything and ask yourself if each area of your finances is focused on your savings goals.
Trim The Expense Tree
Saving more means cutting back on expenses. Can’t figure out where to start? Go through your discretionary spending and rank each item by its importance. Once everything is ranked, cut the items at the bottom. Take the money that would’ve been spent on those items and send it to your savings accounts.
If you cut back on savings during the pandemic, getting back to your previous savings rate might seem daunting. As CNBC suggests, make things easier on yourself by automating your transactions. That way those extra funds you just trimmed from your budget are out of sight, out of mind… and right into savings.